New Click here to Enroll for SIDBI MSME Expert Class by ex-GM, SBI on Nov 24

    Register

    Question

    Under which inventory method, would the inventory on the balance sheet best approximate the current cost?

    A First- in- First Out (FIFO) Correct Answer Incorrect Answer
    B Last –in- First-Out (LIFO) Correct Answer Incorrect Answer
    C Weighted Average cost Correct Answer Incorrect Answer
    D Average cost Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Under the FIFO method, ending inventory is made up of the most recent purchase, thereby providing a closer approximation of the current value.

    Practice Next