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Basic Question 20 of 26

Which inventory accounting method usually gives a valuation of inventory that is closest to its economic value?

A. FIFO
B. LIFO
C. Average cost method
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User Contributed Comments 2

User Comment
vatsal92 You have to assume that inventory here means closing stock.
Inaganti6 @vatsal92 good observation.
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Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

describe the measurement of inventory at the lower of cost and net realisable value and its implications for financial statements and ratios

CFA® 2025 Level I Curriculum, Volume 2, Module 6.