Which of the Following Statements Is False Regarding an Assumption

Multiple Choice

Which of the following statements is false regarding an assumption of inventory cost flow?

A) The cost flow assumption need not correspond to the actual physical flow of goods.
B) The assumption selected may be changed each accounting period.
C) The FIFO assumption uses the earliest acquired prices to cost the items sold during a period.
D) The LIFO assumption uses the earliest acquired prices to cost the items on hand at the end of an accounting period.