The inventory valuation method which tends to smooth out periodic fluctuations in cost is:

Name: The inventory valuation method which tends to smooth out periodic fluctuations in cost is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The weighted average method calculates the average cost of all units in inventory, regardless of when they were purchased. This method tends to smooth out fluctuations in cost, as it incorporates the cost of both old and new inventory into the average. Therefore, answer B is the best choice.

The Inventory Valuation Method Which Tends to Smooth Out Periodic