Which inventory costing method might a company use to match actual physical flow of goods?

• Specific identification
• Average cost
• FIFO
• LIFO

Related MCQs

• Which of the following is NOT affected by the choice of inventory costing method?
• How does the choice of inventory costing method affect COGS?
• Which inventory costing method can result in lower income taxes during periods of inflation?
• T-shirt City uses a periodic inventory system. During the first year of operations, the company made four purchases of a particular product. Each purchase was for 500 units and the prices paid were $9 per unit in the first purchase, $10 per unit in the second purchase, $12 per unit in the third purchase, and $13 per unit in the fourth purchase. At the year-end, 650 of these units remained unsold. Compute the cost of goods sold under the FIFO method and LIFO method, respectively.
• Which costing method spreads the total cost of goods available for sale evenly across all units?
• Which inventory method might a company use if it wants to minimize taxable income during periods of inflation?
• Which inventory system requires a physical count of inventory to determine COGS?
• Which inventory method may result in outdated inventory costs on the balance sheet?
• Which inventory method assumes that the newest inventory items are sold first?
• Which inventory method assumes that the oldest inventory items are sold first?