Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except:
A) LIFO method.
B) Retail method.
C) Specific identification method.
D) Weighted average method.
E) FIFO method.

Question

Quizplus · Accepted Answer

The retail method is typically used in retail businesses to estimate ending inventory and cost of goods sold based on the ratio of the cost of goods available for sale to the retail selling price of those goods. However, it is not considered an acceptable method for assigning specific costs to inventory and cost of goods sold. The other methods listed (LIFO, FIFO, specific identification, and weighted average) are all generally accepted accounting methods for assigning specific costs to inventory and cost of goods sold. The best choice(s) would depend on the specific circumstances and nature of the business.

Acceptable Methods of Assigning Specific Costs to Inventory and Cost