Which assigns an average price to all similar items in stock

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Reference no: EM133901387

Problem

You are a clothing store manager facing rising cotton prices. You have a large stock of jeans purchased at a lower cost earlier in the season. You also have a recent shipment of jeans bought at the new, higher price. Considering the current economic situation (rising cotton prices), which inventory tracking method would likely result in a lower cost of goods sold (COGS) for your store? Last in, first out (LIFO) method, tracking the newer items as sold first even if the actual goods are the older ones in inventory First in, first out (FIFO) method, assuming older inventory is sold first Average cost method, which assigns an average price to all similar items in stock. Specific identification, where each item is tracked with a unique code. Get the instant assignment help.

Reference no: EM133901387

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