The Acquisition Cost of a Certain Raw Material Changes Frequently

question 2

Multiple Choice

The acquisition cost of a certain raw material changes frequently. The book value of the inventory of this material at year end will be the same if perpetual records are kept as it would be under a periodic inventory method only if the book value is computed under the

• A) weighted-average method.
• B) moving average method.
• C) FIFO method.
• D) None of these are correct.

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