Asked by Cameron Simmons-Willis on Jun 05, 2024
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In assigning a cost to ending inventory, the cost flow has to follow the physical flow.
Cost Flow
Describes the manner in which costs move through a company's accounts, from the point of initial recording to their ultimate impact on financial statements.
Physical Flow
Physical flow pertains to the actual movement and processing of goods and materials through a production system or supply chain, often measured to assess efficiency and effectiveness.
- Comprehend the crucial role of the cost-flow assumption in inventory regulation.
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Learning Objectives
- Comprehend the crucial role of the cost-flow assumption in inventory regulation.
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