Cost flow follows costs from the point they are incurred to the point they are recognized as an expense on the income statement.

Name: Cost flow follows costs from the point they are incurred to the point they are recognized as an expense on the income statement.
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Question

Quizplus · Accepted Answer

Cost flow is the method of tracking the movement of costs through a company's inventory, production process, and ultimately to the point of recognition as an expense on the income statement.

Cost Flow Follows Costs from the Point They Are Incurred