Discover the ideal inventory costing method for managing high cost fluctuations in Microsoft Dynamics 365 Supply Chain Management. Learn why the moving average method is the best choice for reassessing costs with each new purchase receipt.
Table of Contents
Question
You are responsible for selecting an inventory costing method that adapts to changes in cost upon receipt of new purchases.
You are tasked with managing products that experience high cost fluctuations.
You need to ensure the inventory method reassesses the cost with each new purchase receipt posting.
What inventory costing method should you choose?
A. LIFO
B. Moving average
C. Standard cost
D. FIFO
Answer
B. Moving average
Explanation
The Moving average cost method reevaluates the cost whenever a new purchase receipt is posted. FIFO and LIFO are methods that use the inventory received first or last respectively to satisfy outbound requirements. 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.