FIFO,LIFO,and weighted average inventory costing methods are based on:
A)assumptions that accountants make about the flow of inventory costs.
B)the actual physical flow of goods purchased and sold by a business.
C)surveys taken that ask real companies how they value their inventories.
D)the accounting equation (assets = liabilities + stockholders' equity).

Question

Quizplus · Accepted Answer

Four generally accepted inventory costing methods are available for determining the cost of goods sold and the cost of goods remaining in ending inventory,regardless of whether a company uses a perpetual or periodic inventory system.The method chosen does not have to correspond to the physical flow of goods,so any one of these four methods is acceptable under GAAP in the United States.

FIFO,LIFO,and Weighted Average Inventory Costing Methods Are Based On