A disadvantage of the weighted-average method is that:

A) current prices have no more significance than prices of goods bought a month earlier.
B) net income will not fluctuate as much as with other methods.
C) it takes into account the number of units purchased at each amount, not a simple average cost.
D) All of the above is correct.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and cost of goods sold using the average cost of all similar items in inventory.

Net Income

The amount of money left after all expenses, taxes, and costs have been subtracted from total revenue; a key indicator of a company's profitability.

Current Prices

Prices of goods, services, or assets at the current time, without adjustment for inflation.