Which Inventory Cost Flow Method Assigns the Cost of the Most

question 59

Multiple Choice

Which inventory cost flow method assigns the cost of the most recent items purchased to cost of goods sold?

• A)Specific identification
• B)Weighted average cost
• C)FIFO
• D)LIFO

---

Definitions:

Warranty Expense

Costs a company incurs due to repairing or replacing products under warranty.

Tax Penalty

A tax penalty is a fine or charge imposed by governmental authorities on individuals or organizations for failing to comply with tax laws.

Deferred Tax Asset

An asset on the balance sheet representing taxes paid or carried forward but not yet realized. This can arise due to timing differences between the recognition of income and expenses for financial reporting and tax purposes.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a specific tax year.