Cost flow is assumed to be in the reverse order of costs incurred.

A) Weighted average
B) First-in, first-out (FIFO)
C) Last-in, first-out (LIFO)
D) Specific identification

Question

Cost flow is assumed to be in the reverse order of costs incurred.A) Weighted averageB) First-in, first-out (FIFO)C) Last-in, first-out (LIFO)D) Specific identification

Peter Velarde · Accepted Answer

Final Answer : C, Explanation :  LIFO (Last-in, first-out) assumes that the most recently incurred costs are the first to be recognized in determining cost of goods sold, which matches the description of cost flow being in the reverse order of costs incurred.

Cost flow is assumed to be in the reverse order of costs incurred.

A) Weighted average
B) First-in, first-out (FIFO)
C) Last-in, first-out (LIFO)
D) Specific identification

Definitions

Learning Objectives

Learning Objectives

Related questions

Cost flow is assumed to be in the reverse order of costs incurred.A) Weighted averageB) First-in, first-out (FIFO) C) Last-in, first-out (LIFO) D) Specific identification

Definitions

Learning Objectives

Learning Objectives

Related questions

Cost flow is assumed to be in the reverse order of costs incurred.

A) Weighted average
B) First-in, first-out (FIFO)
C) Last-in, first-out (LIFO)
D) Specific identification