Asked by
Jaelyn Williams
on Nov 12, 2024Verified
The cost of the units sold and in ending inventory is a weighted average of the purchase costs.
A) Weighted average
B) First-in, first-out (FIFO)
C) Last-in, first-out (LIFO)
D) Specific identification
Cost Flow Assumption
The method used to allocate costs to inventory and cost of goods sold, such as FIFO, LIFO, or weighted average.
Weighted Average
A calculation that takes into account the varying degrees of importance of the numbers in a data set, providing a measure of central tendency.
Purchase Costs
Expenses incurred to acquire goods or services, including the buying price and other associated costs.
- Grasp the importance and application zones of different inventory cost calculation methodologies, namely FIFO, LIFO, Weighted Average, and Specific Identification.
Verified Answer
FN
Learning Objectives
- Grasp the importance and application zones of different inventory cost calculation methodologies, namely FIFO, LIFO, Weighted Average, and Specific Identification.