The cost flow assumption used to value inventory

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Reference no: EM132026983

1. Cost of goods sold is affected by the cost flow assumption used to value inventory. But, it includes many other items. Which of the following items would not be included in net cost of goods sold?

A) Labor

B) Depreciation of the manufacturing equipment

C) Selling expenses

D) Raw materials

2. What is the one advantage of the MIRR over IRR method

A. MIRR uses all cash flows and the IRR does not

B. MIRR considers the time value of money and the IRR does not

C. MIRR is easier to calculate

D. MIRR assumes cash flows are reinvested at the required return and IRR does not

Reference no: EM132026983

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