In the double-extension method, the value of the units in inventory is extended at:
A) twice the base-year prices.
B) twice the current year prices.
C) both base-year prices and current-year prices.
D) only the base-year prices.

Question

Quizplus · Accepted Answer

In the double-extension method, the value of units in inventory is extended at both base-year prices and current-year prices, allowing for a comparison between the two and adjustment for inflation or deflation.

In the Double-Extension Method, the Value of the Units in Inventory