Asked by Abo Yousef Khaleel on Jun 12, 2024
Verified
A company may use more than one inventory costing method concurrently.
Inventory Costing Method
Refers to the techniques or formulas used by businesses to assign costs to their inventory and determine the cost of goods sold, such as FIFO, LIFO, or weighted average methods.
- Comprehend the circumstances that allow for the concurrent use of various inventory costing methods.
Verified Answer
DA
Dilyon AqrawiJun 14, 2024
Final Answer :
True
Explanation :
A company may use different inventory costing methods for different types of inventory or for different purposes (such as for financial reporting and tax purposes). For example, a company may use the first-in, first-out (FIFO) method to calculate its cost of goods sold for financial reporting, but use the last-in, first-out (LIFO) method for tax purposes to minimize its tax liability.
Learning Objectives
- Comprehend the circumstances that allow for the concurrent use of various inventory costing methods.
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