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Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Why is inventory valuation used?

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1. Which of the following is a costing method that is used to tract and cost specific and identifiable inventory items that are either in or out of stock?

2. Which of the following is a costing method that assumes inventory items are sold in the order in which they are acquired?

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About This Quiz & Worksheet

Inventory valuation is a vital calculation businesses use, and this quiz and worksheet combination will help you better understand the purpose of this particular calculation. In addition, the practice questions will test you on the methods used to accomplish inventory valuation.

Quiz & Worksheet Goals

In these assessments, you'll be tested on methods used to value inventory, including:

  • Specific identification
  • Weighted averages
  • LIFO
  • FIFO

Skills Practiced

This quiz and worksheet will help you test your skills in the following areas:

  • Reading comprehension - ensure that you draw the most important information on inventory valuation methods from the related lesson
  • Interpreting information - verify that you can read information regarding weighted average and interpret it correctly
  • Information recall - access the knowledge you've gained regarding FIFO and LIFO

Additional Learning

To learn more about this topic, review the accompanying lesson titled Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average. This lesson covers the following objectives:

  • Define inventory valuation
  • Differentiate between types of inventory systems, including periodic and perpetual systems
  • Understand the purpose of inventory valuation
  • Describe types of inventory valuation strategies, including FIFO, LIFO, and specific identification
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