Which of the Following Methods of Inventory Valuation Is a Compromise

question 15

Multiple Choice

Which of the following methods of inventory valuation is a compromise between the last-in, first-out (LIFO) method and the first-in, first-out (FIFO) method for both the amount of the ending inventory and the cost of goods sold?

• A) The weighted-average-cost method
• B) The standard-average-cost method
• C) The fixed cost method
• D) The variable cost method