The inventory valuation method that tends to smooth out erratic changes in costs is:
A) LIFO.
B) WIFO.
C) FIFO.
D) Weighted average.
E) Specific identification.

Name: The inventory valuation method that tends to smooth out erratic changes in costs is: A) LIFO. B) WIFO. C) FIFO. D) Weighted average. E) Specific identification.
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Question

Quizplus · Accepted Answer

Weighted average method takes into account all costs incurred during a period and hence smooths out any erratic changes in costs.

The Inventory Valuation Method That Tends to Smooth Out Erratic