Accountıng I Deneme Sınavı Sorusu #1313823
According to which inventory cost flow method, is the cost of goods sold is based on the most recent purchases?
Specific Identification Method |
Average Cost Method |
First-In, First-Out (FIFO) Method |
Disclosure Principle |
Last-In, First-Out (LIFO) Method |
Yanıt Açıklaması:
Last-in, First-out (LIFO) is just the opposite of FIFO. Under the last-in, first-out (LIFO) method, ending inventory comes from the oldest costs (beginning inventory and earliest purchases) of the period. The cost of goods sold is based on the most recent purchases (new costs) –that is, the last units in are assumed to be the first units out of the warehouse (sold). This method is forbidden for being misleading especially in hyperinflationary economies. The correct answer is E.
Yorumlar
- 0 Yorum