The inventory cost flow assumption describes the flow of product cost:
A)from the warehouse to the customer.
B)from the asset (inventory)account and to the expense (cost of goods sold)account.
C)from the revenue (sales)account and to the expense (cost of goods sold)account.
D)from the asset (inventory)account and to the revenue (sales)account.

Question

Quizplus · Accepted Answer

The inventory cost flow assumption describes how costs move from inventory (an asset) to cost of goods sold (an expense) when products are sold.

The Inventory Cost Flow Assumption Describes the Flow of Product