The selection of an appropriate inventory cost flow method for an individual company is made by

Question

Quizplus · Accepted Answer

The selection of an appropriate inventory cost flow method is ultimately the responsibility of management. They must consider the specific needs and circumstances of the company, such as tax implications and financial reporting requirements, in order to determine the most appropriate cost flow method. While internal and external auditors may provide guidance or recommendations, the decision ultimately rests with management. The SEC may also have requirements for financial reporting, but management must still make the decision on inventory cost flow method in accordance with these regulations.

The Selection of an Appropriate Inventory Cost Flow Method for an Individual