The moving-average method of determining Inventory is used with the perpetual system of inventory.

Question

Quizplus · Accepted Answer

The moving-average method is commonly used with the perpetual system of inventory. It involves calculating the average cost of goods available for sale and applying that to units sold or remaining in inventory to determine the cost of inventory. This method provides a more accurate reflection of inventory costs, particularly in industries with fluctuating costs.

The Moving-Average Method of Determining Inventory Is Used with the Perpetual