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Cost flow is most likely in the reverse order in which costs were incurred when using the
a. first-in, first-out method
b. first-in, last-out method
c. weighted average cost method
d. last-in, first-out method

Cost flow is most likely in the reverse order in which costs were incurred when using the\newlinea. first-in, first-out method\newlineb. first-in, last-out method\newlinec. weighted average cost method\newlined. last-in, first-out method

Full solution

Q. Cost flow is most likely in the reverse order in which costs were incurred when using the\newlinea. first-in, first-out method\newlineb. first-in, last-out method\newlinec. weighted average cost method\newlined. last-in, first-out method
  1. Explanation: The last-in, first-out method (LIFO) assumes that the most recently incurred costs are the first to be allocated to cost of goods sold, which means it's in the reverse order of when they were incurred.
  2. Correct Answer: So, the correct answer is the last-in, first-out method.

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