If prices are stable, both average and FIFO cost formulas will report the same results.

Name: If prices are stable, both average and FIFO cost formulas will report the same results.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When prices are stable, there is no significant difference between the costs of goods, so both the average cost method and the FIFO (First-In, First-Out) method will report the same results for cost of goods sold and ending inventory.

If Prices Are Stable, Both Average and FIFO Cost Formulas