Monthly Archives: May 2019

An assumption about the cost flow of inventory is necessary: a only when the flow of goods cannot be determined. b. because it is required by the income tax regulation. c. because prices usually change, and tracking which units have been sold is difficul

Content Why Do Companies Use Cost Flow Assumptions? Why do different companies use different cost flow assumptions? Ending Inventory, COGS, and Gross Profit for Specific Identification Accounting Principles I LIFO Example However, as the previous statistics point out, this requirement did not prove to be the deterrent that was anticipated. For many companies, the savings […]