Companies are free to choose FIFO,LIFO,or weighted-average cost to report inventory and cost of goods sold.

Name: Companies are free to choose FIFO,LIFO,or weighted-average cost to report inventory and cost of goods sold.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), companies have the freedom to choose which method of inventory costing (FIFO, LIFO, or weighted-average) they would like to use, as long as they remain consistent in their application of the method.

Companies Are Free to Choose FIFO,LIFO,or Weighted-Average Cost to Report