Asked by
Yesenia Hernandez
on Nov 12, 2024
Verified
Never results in either the highest or lowest possible net income
A) FIFO
B) LIFO
C) Weighted average
Cost Flow Assumption
The method by which a company values and moves its costs (such as FIFO, LIFO) to determine the cost of goods sold and ending inventory valuation.
Net Income
The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue; also known as net profit.
- Learn the significance and practical applications of several inventory costing formulas, like FIFO, LIFO, Weighted Average, and Specific Identification.
Verified Answer
BM
Learning Objectives
- Learn the significance and practical applications of several inventory costing formulas, like FIFO, LIFO, Weighted Average, and Specific Identification.