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:

Rewind After Playing

A feature in multimedia applications where the playback of a video or audio file automatically returns to the beginning once it finishes.

Video

Moving visual media that can be recorded and played back, used for entertainment, education, and communication.

Resize

The act of changing the dimensions of a digital image, window, or other elements in a computing environment.

Reposition

To change the position, location, or arrangement of an object or element within a space or layout.