The selection of an appropriate inventory cost flow assumption for an individual company is made by
A) the external auditors.
B) the IASB.
C) the internal auditors.
D) company management.

Question

Quizplus · Accepted Answer

The selection of an appropriate inventory cost flow assumption is ultimately the responsibility of company management. While external auditors and internal auditors may review and provide input on the selection, it is ultimately up to management to determine the most appropriate method for their specific company. The IASB sets accounting standards at a global level, but does not make specific decisions for individual companies.

The Selection of an Appropriate Inventory Cost Flow Assumption for an Individual