The cost flow assumption selected by a company must correspond to the actual physical movement of the company's goods.

Name: The cost flow assumption selected by a company must correspond to the actual physical movement of the company's goods.
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Quizplus · Accepted Answer

The cost flow assumption (FIFO, LIFO, or Average Cost) does not need to match the physical movement of goods; it is an accounting method for valuing inventory and cost of goods sold.

The Cost Flow Assumption Selected by a Company Must Correspond