Which Inventory Cost Flow Assumption Is Allowed Under U

question 1

Essay

Which inventory cost flow assumption is allowed under U.S.GAAP but not under IFRS? Explain why some U.S.companies will lobby strongly to keep this method as an allowable alternative.

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Definitions:

Relatedness

Relatedness refers to the need to feel connected to others, forming a key component of self-determination theory, which postulates that people need to feel belongingness to achieve psychological growth.

Self-transcendence

The process of transcending beyond one's immediate self-interests or personal experiences.

Affiliation

A connection, association, or relationship with a group or organization.

Ostracism

The process of excluding or ignoring someone from a group or society.