Cost flow assumptions: Cost flow assumptions can be referred to as 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. To Explain: Whether Mr. O is correct.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 14Q

To determine

Cost flow assumptions: Cost flow assumptions can be referred to as 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.

To Explain: Whether Mr. O is correct.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

General Accounting

Apex Manufacturing co. Has a manufacturing capacity of 12,000 units.

Provide correct solution and accounting

Answer 2

Question

Chapter 6, Problem 14Q

To determine

Cost flow assumptions: Cost flow assumptions can be referred to as 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.

To Explain: Whether Mr. O is correct.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 14Q

To determine

Cost flow assumptions: Cost flow assumptions can be referred to as 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.

To Explain: Whether Mr. O is correct.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 14Q

To determine

Cost flow assumptions: Cost flow assumptions can be referred to as 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.

To Explain: Whether Mr. O is correct.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 14Q

To determine

Cost flow assumptions: Cost flow assumptions can be referred to as 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.

To Explain: Whether Mr. O is correct.

Answer 6

Chapter 6, Problem 14Q

To determine

Cost flow assumptions: Cost flow assumptions can be referred to as 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.

To Explain: Whether Mr. O is correct.

Answer 7

Chapter 6, Problem 14Q

To determine

Cost flow assumptions: Cost flow assumptions can be referred to as 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.

To Explain: Whether Mr. O is correct.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 6 - The key to successful business operations is...Ch. 6 - Prob. 2Q Ch. 6 - What is just-in-time inventory management? What...Ch. 6 - Prob. 4Q Ch. 6 - Prob. 5Q Ch. 6 - Prob. 6Q Ch. 6 - Prob. 7Q Ch. 6 - Prob. 8Q Ch. 6 - What is the major advantage and major disadvantage...Ch. 6 - The selection of an inventory cost flow method is...

Solution Summary: The author explains that cost flow assumptions are a method that determines the flow of costs when an inventory is sold.

Videos

Want to see the full answer?

Chapter 6 Solutions