Companies that want a "middle ground" solution to net income and the amount of income taxes that the company will pay will value their inventory at:
A)FIFO.
B)LIFO.
C)average cost.
D)specific identification.

Question

Quizplus · Accepted Answer

The average cost method provides a middle ground solution for valuing inventory, as it smooths out price fluctuations over the accounting period by averaging the cost of goods available for sale. This can result in a balance between the higher income reported with FIFO and the tax advantages of LIFO.

Companies That Want a "Middle Ground" Solution to Net Income