Which of the following statements is true regarding inventory cost flow methods?

Question

Quizplus · Accepted Answer

A company may use more than one costing method concurrently, depending on the nature and requirements of its operations. For example, it may use the FIFO method for certain types of goods and LIFO for others, or it may use different methods for different subsidiaries or product lines. The choice of costing method is largely up to the company and should be based on factors such as accuracy, consistency, and relevance to its financial reporting needs. There are no industry standards that specify which method to use, and companies are free to change their methods if desired.

Which of the Following Statements Is True Regarding Inventory Cost