CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

If inventory costs remain relatively constant from period to period, which inventory methods are the most appropriate in the allocation of cost flow between COGS and inventory carrying value?

I. Specific identification method
III. Weighted average method
Correct Answer: All of them

Given relatively constant prices, the allocation of costs between COGS and ending inventory would be very similar under all of the four methods.

User Contributed Comments 3

User Comment
ColonelCFA the things you learn...
schweitzdm Constant prices = same results
choas69 Given stable prices; inventory, COGS and Earnings will have the same results.
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