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Basic Question 15 of 26
Different inventory accounting methods allocate costs between ______ and ______.
II. purchase price
III. beginning balance
IV. ending balance
I. COGS
II. purchase price
III. beginning balance
IV. ending balance
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." |
Your review questions and global ranking system were so helpful.
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.