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Option (d) is the best choice. The gross margin approach is not an inventory costing strategy.
Which four inventory costing techniques are there?
When a business assigns costs to the things it has in stock, the process is known as inventory costing, sometimes referred to as inventory cost accounting and stock costing. Companies can make sure they have the appropriate amount of inventory on hand thanks to this approach. The procedure has significant tax ramifications as well.
The First-In, First-Out (FIFO), Last-In, First-Out (LIFO), Specific Identification, and Weighted Average Cost are the four primary methodologies for valuing inventories.
Which inventory costing technique is the most popular?
However, due to its clarity, precision, and simplicity, this inventory costing method is also well-liked in a wide range of other industries. Typically, the cost of your oldest inventory is multiplied by the quantity of that inventory sold to determine FIFO.
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