QS 5-9 Inventory Costing
Identify the inventory costing method best described by each of
the following separate statements. Assume a period of increasing
The preferred method when each unit of product has unique
features that markedly affect cost.
2. Matches recent costs against net sales.
3. Provides a tax advantage (deferral) to a corporation when costs
4. Yields a balance sheet inventory amount often markedly less
than its replacement cost.
5. Results in a balance sheet inventory amount approximating