Asked by

Locadine Ngasoh
on Dec 16, 2024

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A new average cost is computed each time a purchase is made in the

A) average-cost method.
B) moving-average cost method.
C) weighted-average cost method.
D) All of these choices are correct.

Moving-average Cost Method

An inventory valuation method that averages the costs of inventory over a period to calculate the cost of goods sold and ending inventory valuation.

Average-cost Method

The average-cost method is an inventory costing method that assigns an average cost to each item in inventory, used to determine the cost of goods sold and ending inventory values.

Weighted-average Cost Method

This inventory costing method assigns a weighted average cost to each unit in inventory, used to calculate cost of goods sold and ending inventory.

  • Understand the principles underlying the computation of new average costs in inventory valuation.
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RL
Ralph LaurenceDec 17, 2024
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