Which of the following will be the same amount regardless of the cost flow assumption adopted?
A) number of items ordered
B) gross profit
C) cost of goods sold
D) ending merchandise inventory

Question

​Which of the following will be the same amount regardless of the cost flow assumption adopted?
A) ​number of items ordered
B) ​gross profit
C) ​cost of goods sold
D) ​ending merchandise inventory

Quizplus · Accepted Answer

The cost flow assumption adopted affects the cost of goods sold and the ending merchandise inventory, which in turn affects gross profit. The number of items ordered, however, is a non-financial item and is not affected by cost flow assumption.

​Which of the Following Will Be the Same Amount Regardless

Which of the Following Will Be the Same Amount Regardless