- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 22. Inventories
- Subject 2. Inventory Valuation Methods
CFA Practice Question
Which of the following flow assumptions is not acceptable under generally accepted accounting principles?
A. FIFO/LIFO
B. Next-in, first-out
C. Average cost
User Contributed Comments 4
| User | Comment |
|---|---|
| pjdeschenes | Isn't next-in, first-out the same as LIFO? |
| hannovanwyk | Note that this is different for IAS. |
| thekobe | this is the case of perpetual inventory |
| CJPerugini | Welp, my assumption was wrong. Last means the cost of the last item. Next means the cost to replace the item. |