Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

5. Inventory

Financial Statement Effects of Inventory Costing Methods

Financial Accounting

5. Inventory

Financial Statement Effects of Inventory Costing Methods

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Multiple Choice

Which of the following is NOT an inventory costing method?

Straight-Line

Weighted Average Cost

LIFO (Last-In, First-Out)

FIFO (First-In, First-Out)

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Verified step by step guidance

Understand the concept of inventory costing methods: Inventory costing methods are techniques used to assign costs to inventory and cost of goods sold. Common methods include FIFO, LIFO, and Weighted Average Cost.

Review the provided options: The options given are Straight-Line, Weighted Average Cost, LIFO, and FIFO.

Identify the odd term: Straight-Line is a depreciation method, not an inventory costing method. It is used to allocate the cost of an asset evenly over its useful life.

Compare the other options: Weighted Average Cost, LIFO, and FIFO are all recognized inventory costing methods used in accounting to value inventory and calculate the cost of goods sold.

Conclude that Straight-Line is NOT an inventory costing method, as it pertains to asset depreciation rather than inventory valuation.