Question

Which of the following is not an inventory costing method?

1) FIFO
2) LIFO
3) Weighted Average
4) Just-in-Time

Answer 1

Just-in-Time (JIT) is not an inventory costing method while FIFO, LIFO, and Weighted Average are. JIT is an inventory management strategy designed to minimize inventory holding costs.

Step-by-step explanation:

The inventory costing method that is not among the given options is Just-in-Time (JIT). While First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and Weighted Average are established inventory valuation and cost flow methods used in accounting, Just-in-Time is an inventory management strategy, not a costing method.

FIFO is an accounting method in which the costs of the oldest inventory items are the first to be expensed. LIFO is the opposite, where the costs associated with the most recently acquired or produced inventory are the first to be expensed. The Weighted Average method takes the average cost of all inventory items to determine the value of goods sold and ending inventory. In contrast, JIT focuses on reducing inventory carrying costs by receiving goods only as they are needed in the production process, thus it does not relate directly to costing inventory.