Which method of inventory costing is not acceptable for financial accounting purposes?
A)Specific Identification
B)FIFO
C)LIFO
D)Replacement Cost

Question

Quizplus · Accepted Answer

Replacement Cost is not an acceptable method for inventory costing in financial accounting because it values inventory at the current cost of replacing the items, rather than at the cost at which they were actually purchased. Financial accounting standards require inventory to be valued at historical cost or market value, not the cost to replace the inventory.

Which Method of Inventory Costing Is Not Acceptable for Financial