Match each description to the appropriate cost flow assumption (a-c).
-Assigns the same value to all inventory units
A)FIFO
B)LIFO
C)Weighted average

Question

Quizplus · Accepted Answer

Weighted average assumes that all inventory units have the same value by taking the total cost of goods available for sale and dividing it by the total number of units available for sale. This results in a weighted average cost per unit that is assigned to inventory.

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