What method of inventory valuation should be used for economic decision-making problems?
A) book value
B) original cost
C) current replacement cost
D) cost or market,whichever is lower
E) historical cost

Question

Quizplus · Accepted Answer

Current replacement cost is the most relevant method for economic decision-making as it reflects the current value of the inventory and allows for more accurate decision-making. This is because economic decisions should be based on the current market value rather than the original cost or historical cost.

What Method of Inventory Valuation Should Be Used for Economic