Inventory cost flow assumptions address accounting issues when a. different units of merchandise are acquired at the same unit cost during the period. b. an item is purchased and it is necessary to determine its cost. c. an item is sold and it is necessary to determine its sales price. d. identical units of merchandise are acquired at different unit costs during the period.

d.identical units of merchandise are acquired at different unit costs during the period.

Explanation:

Inventory cost flow assumptions address accounting issues when identical units of merchandise are acquired at different unit costs during the period.

The inventory cost flow assumption states that the cost of an inventory item changes from when it is acquired or built and when it is sold. Because of this cost differential, management needs a formal system for assigning costs to inventory as they transition to sellable goods.

It actually refers to the fact that the same or identical unit of inventory can be purchased at different unit cost at different dates during an accounting period.

D) identical units of merchandise are acquired at different unit costs during the period.

Explanation:

Inventory cost flow assumptions are used by companies that still use a periodic inventory system. There are three basic types:

Inventory cost assumptions are necessary because the price of the units held in inventory might vary between the time they were produced or acquired, until the time they are actually sold.

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