Inventory costing methods place primary reliance on assumptions about the flow of
A)costs.
B)goods.
C)resale prices.
D)values.

Question

Quizplus · Accepted Answer

Inventory costing methods rely on assumptions about the flow of costs, specifically which costs are attributed to which units of inventory. The chosen method will determine the cost of goods sold and the value of ending inventory on the balance sheet. This is important for determining profitability and making decisions about pricing and inventory management. The other options listed (goods, resale prices, and values) may also be factors in inventory management, but they are not the primary focus of inventory costing methods.

Inventory Costing Methods Place Primary Reliance on Assumptions About the Flow