In assigning a cost to ending inventory,the cost flow must follow the physical flow.

Name: In assigning a cost to ending inventory,the cost flow must follow the physical flow.
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Question

Quizplus · Accepted Answer

The cost flow assumption in accounting does not need to match the physical flow of goods. Companies can choose from several methods (e.g., FIFO, LIFO, average cost) to assign costs to ending inventory, regardless of the actual physical movement of the products.

In Assigning a Cost to Ending Inventory,the Cost Flow Must