For companies that have little change in the characteristics of their inventory items, the most appropriate method for computing a cost index for dollar value LIFO is the
A)inventory-pool method
B)double-extension method
C)weighted-average method
D)link-chain method

Question

Quizplus · Accepted Answer

The double-extension method is suitable for companies with little change in inventory characteristics, as it involves comparing the cost of ending inventory at current-year prices to the cost at base-year prices, which works well when inventory items remain consistent.

For Companies That Have Little Change in the Characteristics of Their