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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.

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