Which Statement Best Explains the LIFO Cost Flow Assumption

question 127

Multiple Choice

Which statement best explains the LIFO cost flow assumption?

• A)A method that uses the most recent costs in the calculation of cost of sales.
• B)A method that uses the cost of goods available for sale divided by the number of units available for sale.
• C)A method that assigns costs to inventories and cost of sales based on actual costs of each item.
• D)A method that uses the oldest costs in the calculation of cost of sales.

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Definitions:

Individuality Corollary

A principle suggesting that individuals perceive events and stimuli in their own unique way based on personal bias or perspective.

Objective Reality

Refers to the existence of objects, facts, or conditions as they are, independent of any perceptions by the human mind.

Physiological Drives

Basic bodily needs or drives that motivate behavior, such as hunger, thirst, or the need for sleep.

Personal Constructs

The cognitive structures an individual employs to interpret and predict events, central to George Kelly's Personal Construct Theory.