Question Details

The first-in, first-out (FIFO) inventory method results in an ending inventory 


True or false 
1.	Management may choose any inventory costing method it desires as long as the cost flow assumption chosen is consistent with the physical movement of goods in the company.

2.	The first-in, first-out (FIFO) inventory method results in an ending inventory valued at the most recent cost.

	3.	The expense recognition principle requires that the cost of goods sold be matched against the ending merchandise inventory in order to determine income.

	4.	The specific identification method of inventory valuation is desirable when a company sells a large number of low-unit cost items.

	5.	If a company has no beginning inventory and the unit cost of inventory items does not change during the year, the value assigned to the ending inventory will be the same under FIFO and average cost flow assumptions.





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