Asked Dec 12, 2019

Do the terms FIFO, LIFO, and weighted average refer to techniques used in determining quantities of the various classes of merchandise on hand? Explain.


Expert Answer

Step 1

Image Transcriptionclose

Cost flow assumptions: Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. It differs from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.


Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in



Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: The cash payments and purchases journals for Outdoor Artisan Landscaping follow. The accounts payabl...

A: Accounts payable subsidiary ledger: This ledger is used to post the creditors transaction in one par...


Q: On May 10, Monty Corp. issues 1,900 shares of $4 par value common stock for cash at $13 per share.Jo...

A: Calculation of cash received:.  Calculation of amount common stock issued:  Calculation of amount pa...


Q: Q2. Image Solutions operates a printing service for customers with digital cameras. The current serv...

A: a.


Q: Keating Co. is considering disposing of equipment with a cost of $73,000 and accumulated depreciatio...

A: Calculate the income if equipment is sold through a broker:


Q: --/1 Question 3 View Policies Current Attempt in Progress rt Bonita Industrieshad average operating ...

A: The return on investment is the return percentage which is received from a particular investment. It...


Q: Fischer Company has outstanding 8,000 shares of $100 par value, 5% preferred stock, and 50,000 share...

A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings, acc...


Q: The net income reported on the income statement for the current year was $142,900. Depreciation reco...

A: Statement of cash flows:This statement reports all the cash transactions which are responsible for i...


Q: Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point ...

A: Click to see the answer


Q: A business operated at 100% of capacity during its first month and incurred the following costs: ...

A: Variable costing is a method under which the direct costs are included which varies according to the...