The selection of an appropriate inventory cost formula for a company is made by
A)external auditors.
B)Canada Revenue Agency (CRA).
C)industry standards.
D)management.

Question

Quizplus · Accepted Answer

The selection of an appropriate inventory cost formula is a decision made by the company's management. They choose the method that best reflects the company's financial situation and aligns with accounting principles. External auditors, the Canada Revenue Agency, and industry standards may influence or set guidelines, but the final decision rests with management.

The Selection of an Appropriate Inventory Cost Formula for a Company