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Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs corresponds with the normal physical flow of goods b. It is easy to apply c. No manipulation of income is possible O d. The recognition of paper profits

Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs corresponds with the normal physical flow of goods b. It is easy to apply c. No manipulation of income is possible O d. The recognition of paper profits

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs corresponds with the normal physical flow of goods b. It is easy to apply O c. No manipulation of income is possible O d. The recognition of paper profits
Transcribed Image Text:Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs corresponds with the normal physical flow of goods b. It is easy to apply O c. No manipulation of income is possible O d. The recognition of paper profits
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