The average inventory costing method, which results in a changed unit inventory, cost after each successive purchase is:
A) Weighted average.
B) Moving average.
C) Specific cost.
D) Simple average.

Question

Quizplus · Accepted Answer

The method described in the question is known as the moving average method. This method calculates the average cost of inventory after each successive purchase by taking into account the cost of the new purchase as well as the cost of the previous inventory on hand. Therefore, the best answer is B for moving average.

The Average Inventory Costing Method, Which Results in a Changed