The inventory costing method that smoothes out changes in costs is
A)FIFO.
B)LIFO.
C)Weighted average.
D)Specific identification.

Question

Quizplus · Accepted Answer

The weighted average method takes the average cost of all inventory items, which will help to smooth out any fluctuations in costs. Both FIFO and LIFO would not smooth out these changes, and specific identification would only apply to specific items and not the overall inventory.

The Inventory Costing Method That Smoothes Out Changes in Costs