The inventory cost formula that results in the inventory value on the statement of financial position that is closest to its actual cost is
A)FIFO.
B)specific identification.
C)average cost.
D)either FIFO or average cost.

Question

Quizplus · Accepted Answer

The specific identification method results in the inventory value on the statement of financial position that is closest to its actual cost because it tracks the actual cost of each specific item in inventory.

The Inventory Cost Formula That Results in the Inventory Value