Question

Inventory cost flow assumptions address accounting issues except when a.an item is sold and it is necessary to determine its cost. b.identical units of merchandise are acquired at different unit costs during the period. c.both of these choices address inventory accounting issues. d.neither of these choices addresses inventory accounting issues.

Answer 1

Answer:

Option C is correct. Both of option A and B are correct.

Explanation:

The inventory cost flow assumptions addresses issues which include the selling of inventory to determine the cost to check whether the inventory is obsolote or not. It also addresses the issues which arises due to multiple prices charged by vendor. These issues are addressed by the inventory cost flow model.