An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is
A)FIFO.
B)moving average.
C)base stock.
D)weighted-average.

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) assumes that the first costs incurred are the first to be recognized as cost of goods sold, leaving the most recent costs in inventory. This means that the oldest costs rarely have an effect on the ending inventory valuation. In contrast, weighted-average and moving average procedures blend or average the costs of all inventory items, so that the costs of the oldest items are still included in the ending inventory valuation. Base stock is not a pricing procedure, but rather a minimum inventory level that is held in stock at all times.

An Inventory Pricing Procedure in Which the Oldest Costs Incurred