Homes 4 You Builds Single-Family Homes Throughout the United States

Multiple Choice

Homes 4 You builds single-family homes throughout the United States and Europe. The International Accounting Standards Board (IASB) Requires Homes 4 You to use which of the following cost flow assumptions for its inventory?

A) FIFO (first-in, first-out) .
B) Specific identification.
C) Weighted-average.
D) The IASB allows any of these cost flow assumptions as long as the company uses it consistently.