Which Statement Is Correct About the Various Cost Allocation Methods

question 137

Multiple Choice

Which statement is correct about the various cost allocation methods available in GAAP?

• A)FIFO is used in the initial recognition and measurement of inventory.
• B)LIFO is used to measure the ending inventory balance on the balance sheet.
• C)Weighted average is not an acceptable allocation method for the income statement.
• D)Moving weighted average is the perpetual weighted average cost method.