One inventory cost flow assumption will result in different cost of goods sold from another inventory cost flow assumption only if:
A)inventory quantities change from the beginning to end of the year.
B)a new product is added to inventory during the year.
C)the cost of inventory items changes during the year.
D)price levels do not change during the year.

Question

Quizplus · Accepted Answer

Different inventory cost flow assumptions (like FIFO, LIFO, or weighted average) will result in different cost of goods sold only if the cost of inventory items changes during the year.

One Inventory Cost Flow Assumption Will Result in Different Cost