When prices fluctuate widely, which of the following method will even out the effect of fluctuations?

CS Executive · Cost and Management Accounting · PYQS · June 2017
When prices fluctuate widely, which of the following method will even out the effect of fluctuations?
(A) Weighted average
(B) FIFO
(C) LIFO
(D) Simple average

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Inventory Valuation

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