Which Statement Is Correct About Using a Cost Flow Assumption

question 77

Multiple Choice

Which statement is correct about using a cost flow assumption?

• A)This is an assumption about the flow of goods through the various departments in an organization.
• B)This is an assumption about the flow of costs between the income statement and the balance sheet.
• C)There is only one acceptable cost flow assumption under GAAP in Canada.
• D)Specific identification and LIFO are both acceptable cost flow assumptions in Canada.

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Definitions:

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