Generally accepted accounting principles would allow a company to use FIFO for part of its inventory and the weighted-average cost flow assumption for the rest of its inventory.

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Generally accepted accounting principles allow a company to use different cost flow assumptions for different segments of its inventory based on their respective characteristics or nature. FIFO and weighted-average cost flow assumptions are both acceptable methods under GAAP. Therefore, a company can use FIFO for one part of its inventory and the weighted-average cost flow assumption for the rest of its inventory, as long as it discloses the accounting policy consistently in its financial statements.

Generally Accepted Accounting Principles Would Allow a Company to Use