If a company uses average costing instead of FIFO, it will still get the same unit costs.

Name: If a company uses average costing instead of FIFO, it will still get the same unit costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Average costing calculates the cost of inventory based on the average cost of all similar items in inventory, whereas FIFO (First-In, First-Out) assumes that the oldest items are sold first, leading to different unit costs, especially in periods of price fluctuation.

If a Company Uses Average Costing Instead of FIFO, It