Which cost flow assumption will produce the same results under both the periodic and perpetual inventory systems?
A)FIFO
B)Moving average
C)They both produce the same results.
D)They both produce different results.

Question

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) cost flow assumption will produce the same results under both the periodic and perpetual inventory systems. This is because the FIFO method assumes that the oldest inventory items are sold first, regardless of the inventory system used. Therefore, whether a company is using periodic or perpetual inventory, the order in which the inventory items are sold will not affect the calculation of cost of goods sold or ending inventory.

Which Cost Flow Assumption Will Produce the Same Results Under