chunty

FIFO won't distort COGS if costs are stable, which is what is said in this question.

turbolt Wrote:
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> 1BigStud - I think you mean FIFO makes the balance
> sheet closest to reality (but distorts cogs on the
> income statement.) LIFO is the "closest to
> reality" when looking at COGS.

redskins44

Regarding the first question: Specific identification method. Isn't it the most precise method of the cost flow allocation?

Roflnadal

You are correct. But that method is unrealistic. But that could make a good "trick" question.

Deimon Wrote:
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> Regarding the first question: Specific
> identification method. Isn't it the most precise
> method of the cost flow allocation?