Under which method of inventory costing, a pre-determined cost is assigned to all items of inventory?
A. Replacement cost method
B. Standard cost method
C. AVCO or average cost
D. FIFO method
Answer: Option B
Solution(By Examveda Team)
Under Standard cost method of inventory costing, a pre-determined cost is assigned to all items of inventory. A standard cost is described as a predetermined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or as the "should be" cost. Standard costs are often an integral part of a manufacturer's annual profit plan and operating budgets.Related Questions on Accounting
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