Which of the Four Inventory Cost Flow Assumptions Is Best

question 109

Multiple Choice

Which of the four inventory cost flow assumptions is best suited to inventories of high-priced, low-volume items?

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

---

Definitions:

Opposite Directions

A term potentially used to describe actions or movements that are completely contrary to each other in orientation or aim.

Total Revenue

The total amount of money earned from the sale of goods or services before deducting any costs.

Price

The sum of money needed to buy a product or service.

Inelastic

A description of a product's demand when its price elasticity is less than one, indicating that demand is relatively unresponsive to price changes.