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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?
B. LIFO
C. Average cost method
A. FIFO
B. LIFO
C. Average cost method
User Contributed Comments 2
| User | Comment |
|---|---|
| vatsal92 | You have to assume that inventory here means closing stock. |
| Inaganti6 | @vatsal92 good observation. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
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® 2024 Level I Curriculum, Volume 2, Module 6.