Which of the Following Statements Regarding FIFO Is Incorrect

question 54

Multiple Choice

Which of the following statements regarding FIFO is incorrect?

• A) Ending inventory is based on the costs of the most recent purchases.
• B) FIFO is consistent with the physical movement of inventory for most companies.
• C) The first units to come in are assumed to be the first units sold.
• D) FIFO is a specific identification costing method because companies sell their oldest inventory first.

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Definitions:

Ethical Principles

Fundamental guidelines that help govern behaviors and decision-making based on moral beliefs and values.

Code Of Conduct

A set of rules outlining the social norms, ethical standards, and responsibilities of, or proper practices for, an individual, party, or organization.

Corruption

Dishonest or fraudulent conduct by those in power, typically involving bribery or the misuse of authority for personal gain.

Yellow Pages

A telephone directory of businesses, categorized by the nature of the business, typically used for commercial advertising.