What is the variance percentage threshold for using the rolling-average cost method?
Understand the Problem
The question is asking about the specific variance percentage threshold that is considered appropriate for employing the rolling-average cost method. To solve this, we need to identify which of the provided answer options correctly states this threshold.
Answer
No specific percentage threshold was found.
No specific variance percentage threshold for using the rolling-average cost method is mentioned in the search results.
Answer for screen readers
No specific variance percentage threshold for using the rolling-average cost method is mentioned in the search results.
More Information
The rolling-average cost method may be used if inventory is held for several years or costs fluctuate, as per the IRS guidelines. However, the exact variance percentage threshold is not provided in the results.
Tips
Common mistakes might include assuming there is a universal threshold or misinterpreting thresholds meant for different variance calculations.
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