Wondering if it possible to use Most Recent Cost as costing method. Presently using Moving Average. Most Recent Cost does not seem to be available.

Thanks

Hi Bill

Most Recent Cost is not available, and it couldn't be.

Say, for example, you buy one part at $10 and then a day later the same part at $12. The total value is $22. The most recent cost is $12. What if you sold them both at the same time. If you used MRC as the costing method, the cost would be $24, which is more than the total value.

Steve

Hi Bill,

LIFO is as close as you can get. Check with CRA about changing costing methods.