Which of the following inventory cost flow methods involves computations based on broad inventory pools of similar items?
A) Regular quantity of goods LIFO
B) Dollar-value LIFO
C) Weighted average
D) Moving average

Question

Quizplus · Accepted Answer

Dollar-value LIFO involves computations based on broad inventory pools of similar items, allowing for the grouping of goods into pools that are valued using the LIFO (Last In, First Out) principle, but on a dollar basis rather than item by item. This method simplifies the tracking and valuation of inventory by focusing on the total value of the inventory pool rather than the specific details of individual items.

Which of the Following Inventory Cost Flow Methods Involves Computations