Match each description to the appropriate cost flow assumption (a-c).
-Never results in either the highest or lowest possible net income
A)FIFO
B)LIFO
C)Weighted average

Question

Quizplus · Accepted Answer

The weighted average cost flow assumption takes into account both the cost and quantity of inventory purchased during a period. This results in a cost of goods sold and ending inventory value that falls in between the values calculated using FIFO and LIFO. Therefore, it never results in either the highest or lowest possible net income.

Match Each Description to the Appropriate Cost Flow Assumption (A-C)