Which of the following inventory costing methods requires a company to keep track of the actual movement of individual inventory items?

a) FIFO

b) LIFO

c) specific unit cost

d) average cost

Question

Business

Delaney Duncan

3 May, 20:45

Which of the following inventory costing methods requires a company to keep track of the actual movement of individual inventory items?

a) FIFO

b) LIFO

c) specific unit cost

d) average cost

+3

Answers (1)

Know the Answer?

Isabel · Answer 1

c) specific unit cost

Explanation:

As its own name states, specific unit cost consists on identifying the cost for each specific item in the inventory and keeping track of their movements individually. This practice is commonly used by companies with small inventories comprised by items of great individual value, such as jewelries, for example.

Which of the following inventory costing methods requires a company to keep track of the actual movement of individual inventory items?a) FIFOb) LIFOc) specific unit costd) average cost

Which of the following inventory costing methods requires a company to keep track of the actual movement of individual inventory items?

a) FIFO

b) LIFO

c) specific unit cost

d) average cost