Which inventory cost flow method assigns the same cost to all units whether sold or left in ending inventory?

Question

Quizplus · Accepted Answer

Weighted average cost method assigns the same cost to all units whether sold or left in ending inventory as it takes the average of the total cost of goods available for sale and divides it by the total number of units available for sale. This method is often used in industries where the cost of inventory changes frequently, and it smooths out the fluctuations in the cost of inventory. Therefore, the weighted average cost is the best choice for this scenario.

Which Inventory Cost Flow Method Assigns the Same Cost to All