Number of items ordered will be the same amount regardless of the cost flow assumption adopted
Explanation:
The principles of the term cost flow apply to how costs are eliminated from the assets of a business and recorded in the form of sales of products sold. In the United States, FIFO, LIFO and the average cost flow assumptions include.
To make use of cost flow assumptions in their accounts, a company has to offset costs at the end of the year. The total inventory cost per year must equal the cost of the goods sold and the cost of the goods left behind in the inventory.
