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The inventory costing method that smooths out erratic changes in costs is:

a. Weighted average.
b. FIFO
c. Specific identification.
d. LIFO
e. WIFO

1 Answer

3 votes

Final answer:

The inventory costing method that smooths out erratic changes in costs is weighted average.

Step-by-step explanation:

The inventory costing method that smooths out erratic changes in costs is called weighted average. The weighted average method calculates the average cost of the inventory based on the units sold and the cost of each unit. It is also known as the average cost method.

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