The major issue in inventory accounting is
A)determining whether to take inventory using cycle counts as opposed to counting all inventory only at the end of the year.
B)deciding whether to maintain records on a periodic or perpetual basis.
C)determining what goods to include in inventory.
D)choosing the method for allocating goods available for sale to ending inventory and cost of goods solD.

Question

Quizplus · Accepted Answer

Determining the method for allocating goods available for sale to ending inventory and cost of goods sold is a major issue in inventory accounting because it directly affects the financial statements' accuracy and the cost of goods sold calculation, impacting gross profit and net income.

The Major Issue in Inventory Accounting Is