Which of the following is not a common cost flow assumption used in costing inventory?

A) First-in first-out
B) Middle-in first-out
C) Last-in first-out
D) Average cost

Common Cost

An expense that benefits multiple cost objects and cannot be directly traced to any single product or process.

First-in First-out

An inventory valuation method where the costs of the oldest inventory items are charged to cost of goods sold first.

Average Cost

A method of calculating the cost of inventory or assets by taking the weighted average of the costs of all similar items in inventory or all assets acquired during a period.