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Dylan Martinez
on Nov 14, 2024

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The inventory cost formula that results in the inventory value on the statement of financial position that is closest to its actual cost is

A) FIFO.
B) specific identification.
C) average cost.
D) either FIFO or average cost.

Actual Cost

The actual amount of money spent to acquire an asset, including all costs necessary to get the asset ready for its intended use.

Specific Identification

An inventory valuation method in which the cost of each individual item in inventory is tracked and used to compute cost of goods sold.

Financial Position

A snapshot of a company’s assets, liabilities, and equity at a specific point in time, indicating its economic resources and obligations.

  • Acquire knowledge about the core concepts and effects of the specific identification technique for costing inventory.
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AP
Ashutosh pradhanNov 17, 2024
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