Question

(True) or (False)? GAAP decides whether a company should use FIFO, LIFO, Weighted Average Cost, or Specific Identification to value its inventory cost.

Answer 1

Answer:

False

Explanation:

In order to choose which inventory method i.e. FIFO, LIFO, weighted average cost, or specific identification method the company can free to choose which any of the inventory methods to determine the inventory cost

There is no need to decided by GAAP

hence, the given statement is false

Therefore it is not a true statement