Is the Average Cost inventory method OK to use?

[KJ23]

I am starting a small online retail business and am trying to learn the accounting side of things. I have been reading about the different methods of calculating COGS for items and it seems like the most popular method is FIFO, but that's kind of complicated. Is using the Average Cost method (which seems more "accurate" to me anyway..) acceptable for a retail business?

Thanks for your advice

 

[geekgirl]

The choice of inventory valuation has
tax implications. LIFO would be most preferable if you want a lower tax liability. What I mean is that COGS will be higher, thus gross profit will be lower because you are using newer prices to calculate COGS.