Which costing method tends to level out the effects of cost increases or decreases?
A)Specific identification
B)FIFO
C)Average-cost
D)LIFO

Name: Which costing method tends to level out the effects of cost increases or decreases? A)Specific identification B)FIFO C)Average-cost D)LIFO
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Question

Quizplus · Accepted Answer

The average-cost method calculates the weighted average cost of all units in inventory, which tends to level out the effects of cost increases or decreases. Therefore, it is the best choice for this situation.

Which Costing Method Tends to Level Out the Effects of Cost