The inventory cost under the average cost per unit method will generally fall in between the inventory costs using the LIFO and FIFO methods.

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Quizplus · Accepted Answer

The average cost per unit method takes into account the average cost of all units in inventory and therefore will generally fall in between the inventory costs calculated using the LIFO and FIFO methods, which use specific units and their costs. However, it is still possible for the average cost per unit method to result in a higher or lower inventory cost than LIFO or FIFO, depending on the specific cost flow and inventory levels.

The Inventory Cost Under the Average Cost Per Unit Method