The inventory cost formula that results in the inventory value on the statement of financial position that is closest to its actual cost is
A) FIFO.
B) specific identification.
C) average cost.
D) either FIFO or average cost.

Question

Quizplus · Accepted Answer

The specific identification method tracks the actual cost of each individual item, providing the most accurate inventory valuation.

The Inventory Cost Formula That Results in the Inventory Value