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

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

Quizplus · Accepted Answer

FIFO assumes that the first items purchased are the first items sold. Therefore, the cost of goods sold will be the same regardless of whether a perpetual or periodic inventory system is used.

If a Company Uses the FIFO Cost Assumption the Cost