Which method would provide the most accurate matching of costs with revenues in a period of price fluctuation?
Practice Questions
1 question
Q1
Which method would provide the most accurate matching of costs with revenues in a period of price fluctuation?
FIFO
LIFO
Weighted Average
Specific Identification
The Weighted Average method provides a more accurate matching of costs with revenues during price fluctuations by averaging the costs of all inventory.
Questions & Step-by-step Solutions
1 item
Q
Q: Which method would provide the most accurate matching of costs with revenues in a period of price fluctuation?
Solution: The Weighted Average method provides a more accurate matching of costs with revenues during price fluctuations by averaging the costs of all inventory.
