The average cost method will always yield results between FIFO and LIFO.

Name: The average cost method will always yield results between FIFO and LIFO.
Brand: Quizplus
Rating: 4.7 (36 reviews)

Question

Quizplus · Accepted Answer

The average cost method calculates the cost of goods sold and ending inventory based on the average cost of all units. This method will use a weighted average unit cost, which will typically fall between the costs calculated using the FIFO and LIFO methods. Therefore, the statement is true.

The Average Cost Method Will Always Yield Results Between FIFO