Inventory costing methods place primary emphasis on assumptions about
A) flow of goods
B) flow of costs
C) flow of goods or flow of costs depending on the method
D) neither flow or goods or flow of costs

Question

Quizplus · Accepted Answer

Inventory costing methods primarily focus on the flow of costs, specifically the timing and measurement of the costs associated with the goods being sold. The specific method chosen will determine how costs are allocated and recorded, which can impact profitability and financial reporting. While the method may also impact the flow of goods, this is secondary to the goal of accurately measuring and reporting the cost of goods sold.

Inventory Costing Methods Place Primary Emphasis on Assumptions About