Inventory flow assumptions
Briefly discuss the factors management should consider in deciding:
(a) Whether to use specific identification or a flow assumption in measuring the cost of goods sold.
(b) Whether to use FIFO or LIFO. (Assume a long-run trend of slowly rising prices.)

Question

Quizplus · Accepted Answer

The Answer of Inventory flow assumptions
Briefly discuss the factors management should consider in deciding:
(a) Whether to use specific identification or a flow assumption in measuring the cost of goods sold.
(b) Whether to use FIFO or LIFO. (Assume a long-run trend of slowly rising prices.)

Inventory Flow Assumptions Briefly Discuss the Factors Management Should Consider in Deciding