A company may use more than one type of inventory method. For example it may use specific identification for one type of inventory and FIFO for another.

Name: A company may use more than one type of inventory method. For example it may use specific identification for one type of inventory and FIFO for another.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

It is true that a company can use multiple inventory methods for different types of inventory. This is known as using the weighted-average or average cost method.

A Company May Use More Than One Type of Inventory