Decisions management must make in accounting for inventory cost include all of the following except:
A)Costing method.
B)Perpetual or periodic inventory system.
C)Customer demand for inventory.
D)Damage or obsolescence
E)Items included in inventory and their costs.

Question

Quizplus · Accepted Answer

Customer demand for inventory is not a decision that management needs to make when accounting for inventory cost. The other options are all key decisions that management needs to make, such as determining the costing method (FIFO, LIFO, weighted average), choosing between a perpetual or periodic inventory system, accounting for damages or obsolescence, and selecting which items to include in inventory and their respective costs.

Decisions Management Must Make in Accounting for Inventory Cost Include