Question: How does the weighted-average cost method differ from the average cost method? A. Each inventory price is weighted by the quantity of units purchased at

How does the weighted-average cost method differ from the average cost method?

A.

Each inventory price is weighted by the quantity of units purchased at a given price with the weighted-average cost method.

B.

An average of the inventory purchase prices is computed without regard to the quantities purchased with the weighted-average cost method.

C.

The average cost method assumes all inventory items have the same cost, whereas the weighted-average cost method assumes costs differ.

D.

The average cost method is used with periodic inventory systems and the weighted-average cost method is used with perpetual inventory systems.

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