alleryStart learning →Which method bases cost flow on a weighted average of goods?
ALIFO costing method
BAverage costing method
CHIFO costing method
DFIFO costing method
Answer & Solution
Correct answer: B. Average costing method
The average cost method spreads total cost over total units, giving a single weighted average rate.
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Related questions
The ABC concept is based on whose law?An item needs 500 units a year at Rs 40 each. What is its annual usage value?After computing usage values, items are arranged in which order?In ABC analysis, how is an item's annual usage value computed?ABC class thresholds are what?Class B holds 30% of items. About what share of annual consumption value does it hold?Half of all items fall in class C. Roughly what share of consumption value do they hold?ABC analysis resembles which principle, where few items carry most value?