The average costing method matches cost flow with the physical flow of production.

Name: The average costing method matches cost flow with the physical flow of production.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The average costing method spreads out the cost of goods evenly across all units available for sale, rather than matching cost flow with the actual physical flow of goods, which is more characteristic of specific identification or FIFO methods.

The Average Costing Method Matches Cost Flow with the Physical