Answer:
correct option is b. The physical count determines the inventory on hand
Explanation:
LIFO is Last In, First Out
so in LIFO cost flow is assumption
and the last costs are the first ones to leave inventory
become the cost of goods sold on the income statement.
and first costs will be reported as inventory on the balance sheet
and under LIFO periodic we are wait until the entire year is over before assigning cost
so we can say The physical count determines the inventory on hand
and Cost is the total resources given up to acquire inventory and move it
