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Commerce · Q212

Costing

Graduate and Post Graduate · Commerce · question 212

Q212

Which one out of the following is not an inventory valuation method?

A.
FIFO
B.
LIFO
C.
Weighted Average
D.
EOQ
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
EOQ is not an inventory valuation method. Economic order quantity (EOQ) is the ideal order quantity a company should purchase for its inventory given a set cost of production, a certain demand rate, and other variables.