Which of the following costing methods combines the cost of units in beginning inventory with the current period costs to determine the unit production cost?
A)LIFO
B)Average cost
C)FIFO
D)Direct

Question

Quizplus · Accepted Answer

The costing method that combines the cost of units in beginning inventory with the current period costs to determine the unit production cost is average cost. LIFO and FIFO are method of valuing inventory rather than determining unit production cost, and direct costing is a method of allocating costs to manufactured products. Therefore, the best choice for this question is B.

Which of the Following Costing Methods Combines the Cost of Units