In a period of falling prices,the inventory costing method that assigns a value to inventory that approximates current cost is:
A)FIFO.
B)LIFO.
C)Specific identification.
D)Weighted average.

Question

Quizplus · Accepted Answer

When FIFO is used,the costs of the newer goods are included in the cost of the ending inventory.When LIFO is used,the costs of the older goods,including those in beginning inventory,are included in the cost of the ending inventory.Weighted average is a middle-of-the-road method.Specific identification assigns costs to ending inventory and cost of goods sold by tracking and identifying each specific item of inventory.

In a Period of Falling Prices,the Inventory Costing Method That