There Are Many Different Methods Available for Costing Inventory

Essay

There are many different methods available for costing inventory. Therefore, the decision on which method to select should involve some serious thought as to the consequences involved.
Required:
a. Discuss the objectives of inventory costing in terms of accounting principles.
a. One objective of inventory costing is to match costs of goods sold with the revenues they helped generate in conformity with the matching principle. The other objective in inventory costing is to assign an appropriate value to the
b. Explain the consequences of the method selected.