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14 August, 09:29

The selection of an appropriate inventory cost flow assumption for an individual company is made by:

a. the external auditors

b. the SEC

c. the internal auditors

d. management

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Answers (1)
  1. 14 August, 12:07
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    d. Management.

    Explanation:

    Option a and b are incorrect because external parties of a business (the external auditors, management, suppliers) can not decide on the company's internal affairs.

    Option c is wrong because the auditor's task is to inspect the item, not making a decision.

    Management has the complete authority of making any internal decision of an organization.

    Therefore, option d is the answer.
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