Which method of inventory costing is not acceptable for financial accounting purposes?
A) Specific Identification
B) LIFO
C) FIFO
D) Replacement Cost

Question

Quizplus · Accepted Answer

Replacement Cost is not acceptable for financial accounting purposes as it is not based on the actual cost of goods sold or held in inventory, but rather on market prices at the time of valuation. The acceptable methods for financial accounting purposes are Specific Identification, LIFO, and FIFO.

Which Method of Inventory Costing Is Not Acceptable for Financial