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An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is

a.base stock.
b.FIFO.
c.LIFO.
d.weighted-average.

1 Answer

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Final answer:

LIFO (Last-In, First-Out) is an inventory accounting method where the oldest costs have a minimal impact on ending inventory valuation since the latest items added are sold first, leaving older costs on the balance sheet.

Step-by-step explanation:

An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is LIFO (Last-In, First-Out). This method assumes that the most recent items added to the inventory are sold first, and the older inventory costs remain on the balance sheet. In contrast, FIFO (First-In, First-Out) would see oldest costs having a direct effect on the ending inventory valuation, as it assumes that the earliest goods purchased are the first to be sold. The base stock method assumes that a certain quantity of inventory is always on hand. Weighted-average costs are computed by averaging the cost of inventory at the beginning of a period with costs incurred during the period. Hence, LIFO is the method where the oldest costs have the least impact on the ending inventory valuation.

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