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Which method for inventory costing allows a business to store inventory without indicating which batch it belongs to?

a) FIFO
b) LIFO
c) Weighted Average
d) Specific Identification

1 Answer

1 vote

Final answer:

The inventory costing method that does not require tracking specific batches is the weighted average method.

Step-by-step explanation:

The inventory costing method that allows a business to store inventory without indicating which batch it belongs to is the weighted average method. Unlike First-In, First-Out (FIFO) and Last-In, First-Out (LIFO), which track the costs of individual batches of inventory, the weighted average method cost for all units available for sale during the period and applies that average to the units sold.

The specific identification method, on the other hand, is used when each item in inventory can be directly identified and is not applicable to the student's question since it does identify each batch.

User Morten J
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