There are many different methods available for costing inventory.Therefore, the decision on which method to select should involve some serious thought as to the consequences involved.
Required:
a. Discuss the objectives of inventory costing in terms of accounting principles.
b. Explain the consequences of the method selected.

Inventory Costing

The method used to value inventory, including approaches like Last In, First Out (LIFO), First In, First Out (FIFO), and Weighted Average Cost.

Accounting Principles

The rules and guidelines that companies must follow when reporting financial data.

Consequences

Refers to the outcomes, effects, or results that follow from specific actions, decisions, or conditions.