Which Statement Is Correct About Using a Cost Flow Assumption

Multiple Choice

Which statement is correct about using a cost flow assumption?

A) This is an assumption about the flow of goods through the various departments in an organization.
B) This is an assumption about the flow of costs between the income statement and the balance sheet.
C) There is only one acceptable cost flow assumption under GAAP in Canada.
D) Specific identification and LIFO are both acceptable cost flow assumptions in Canada.