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

---

Definitions:

Grid Technique

A decision-making tool used to evaluate and prioritize options by placing them on a grid of two or more criteria.

Highest Cost Facility Location

The highest cost facility location typically refers to the site among options for a new facility that involves the greatest expense due to factors like labor, materials, taxes, and shipping.

Channel of Distribution

The path or route that goods and services take from the producer to the end user, encompassing intermediaries such as wholesalers and retailers.