If a company uses the FIFO cost flow assumption, the cost of goods sold for the period will be the same under a perpetual or periodic inventory system.

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The cost of goods sold under FIFO method is based on the assumption that the first units purchased or produced are sold first. This means the cost of the first units in inventory are assigned to cost of goods sold. Regardless of whether a company uses a perpetual or periodic inventory system, the cost of goods sold will be the same under the FIFO cost flow assumption.

If a Company Uses the FIFO Cost Flow Assumption, the Cost