Manufacturing companies that use standard costs do NOT need to compute inventory cost based on LIFO, FIFO, or weighted average.

Name: Manufacturing companies that use standard costs do NOT need to compute inventory cost based on LIFO, FIFO, or weighted average.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Standard costs are predetermined costs that are used for planning and control purposes. They are not based on actual costs, so they do not need to be computed using LIFO, FIFO, or weighted average.

Manufacturing Companies That Use Standard Costs Do NOT Need to Compute