Las Vegas Ltd sells second hand luxury cars of various makes and models,and uses the FIFO cost flow assumption to ascertain the cost of ending inventory.This would be incorrect because:

Question

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) cost flow assumption might not accurately capture the unique characteristics of each item in inventory, especially for second-hand luxury cars, where each car may have different features, conditions, and values.

Las Vegas Ltd Sells Second Hand Luxury Cars of Various