Which of the following statements is true?
A)Whether unit costs are steadily rising or falling,the weighted average cost method always yields a cost of goods sold between that of FIFO and LIFO.
B)FIFO will lead to the highest net income if unit costs are falling.
C)LIFO will always yield a smaller net income than FIFO.
D)Specific identification is the most practical,but least accurate,measure of cost and net income.

Question

Quizplus · Accepted Answer

The weighted average cost method smooths out price fluctuations, resulting in a cost of goods sold that typically falls between FIFO and LIFO when unit costs are steadily rising or falling.

Which of the Following Statements Is True