Which statement best differentiates cost flow assumptions from the physical flow of goods?

• A. Physical flow of goods is always consistent with cost flow assumptions used for accounting purposes.
• B. Cost flow assumptions are used for accounting purposes and do not reflect the physical movement of goods.
• C. Cost flow assumptions are irrelevant to inventory management and warehouse operations completely and entirely.
• D. Cost flow assumptions dictate the physical movement of goods in warehouses and storage facilities directly.

Answer: (B)