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Match each description to the appropriate cost flow assumption (a-c).
a. FIFO
b. LIFO
c. Weighted average
5. Produces the same cost of merchandise sold under both the periodic and the perpetual inventory system
6. Rarely used with a perpetual inventory system
7. Produces results that are similar to the specific identification method
8. Widely used for tax purposes
9. Never results in either the highest or lowest possible net income
10. Produces the highest gross profit when costs are decreasing
11. Produces the highest ending inventory when costs are increasing
12. Assigns the same value to all inventory units
13. Prohibited under International Financial Reporting Standards (IFRS)
14. Does not follow the physical flow of goods in most cases
15. Cost of the latest purchases are assigned to ending inventory

Sagot :

Tundexi

Answer:

5. Produces the same cost of merchandise sold under both the periodic and the perpetual inventory system

Cost flow assumption: FIFO

6. Rarely used with a perpetual inventory system

Cost flow assumption: Weighted average

7. Produces results that are similar to the specific identification method

Cost flow assumption: FIFO

8. Widely used for tax purposes

Cost flow assumption: LIFO

9. Never results in either the highest or lowest possible net income

Cost flow assumption: Weighted average

10. Produces the highest gross profit when costs are decreasing

Cost flow assumption: LIFO

11. Produces the highest ending inventory when costs are increasing

Cost flow assumption:  FIFO

12. Assigns the same value to all inventory units.

Cost flow assumption: Weighted average

13. Prohibited under International Financial Reporting Standards (IFRS) Cost flow assumption: LIFO

14. Does not follow the physical flow of goods in most cases

Cost flow assumption: LIFO

15. Cost of the latest purchases are assigned to ending inventory

Cost flow assumption: FIFO

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