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BE6-6 An information technology company just started business and is trying to decide which inventory cost flow assumption to use. Assuming prices are falling, as

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BE6-6 An information technology company just started business and is trying to decide which inventory cost flow assumption to use. Assuming prices are falling, as they often do in the informa tion technology industry, answer the following questions for this company:: (a) Which cost flow assumption will give the highest ending inventory? Why? (b) Which cost flow assumption will give the highest cost of goods sold? Why? (c) Which cost flow assumption will result in the highest cash flow? Explain. (d) What factors are important for the company to consider as it tries to choose the most appropriate cost flow assumption

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