CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Different inventory accounting methods allocate costs between ______ and ______.

I. COGS
II. purchase price
III. beginning balance
IV. ending balance
Correct Answer: I and IV

The cost of goods available for sale (beginning inventory + purchases) is the same for all inventory methods.

User Contributed Comments 5

User Comment
Bududeen i disagree...if they allocate different costs to ending balance, then beginning balance by deduction is also different...because ending balance for this period becomes beginning balance for the next period
vatsal92 You're technically right Bududeen, but you're suppose to tackle this question from a micro perspective.
choas69 chill.... you cant just disagree with CFA man.
ashish100 "i disagree" lmao
zhefuli Recall Q1: "At year-end, all COG available for sale either become COGS or ending inventory."
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