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

Question

Quizplus · Accepted Answer

The weighted average method averages the costs of goods available for sale over the total units available for sale, resulting in a single unit cost applied to all units. FIFO (First-In, First-Out) assigns costs based on the chronological order goods were purchased or manufactured, leading to potentially different unit costs as older, usually cheaper, inventory is sold first.

If a Company Uses the Weighted Average Method Instead of FIFO