Learn how to manage inventory with highly variable costs in Microsoft Dynamics 365 Supply Chain Management. Discover why the LIFO method is ideal for prioritizing the most recently received items for outbound processes.
Table of Contents
Question
You are tasked with managing inventory for products with highly variable costs.
You will select an inventory costing method that prioritizes the most recently received items for outbound processes.
What inventory costing method should you choose?
A. LIFO
B. Standard cost
C. FIFO
D. Moving average
Answer
A. LIFO
Explanation
The LIFO (last in first out) method uses the inventory received last to satisfy outbound requirements. FIFO uses the inventory received first, Moving average reevaluates the cost whenever a new purchase receipt is posted, and Standard cost assigns a cost to raw materials and components that are used in manufacturing and sold to customers.
Microsoft Dynamics 365 Supply Chain Management Functional Consultant MB-330 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the Microsoft Dynamics 365 Supply Chain Management Functional Consultant MB-330 exam and earn Microsoft Dynamics 365 Supply Chain Management Functional Consultant MB-330 certification.