Which of the following would not be affected by the choice of an inventory costing method (that is,choosing between FIFO,LIFO,weighted average,and specific identification)?
A)Sales revenue
B)Cost of goods sold
C)Gross profit
D)Net income

Question

Quizplus · Accepted Answer

Sales revenue is determined by the number of units sold and the selling price per unit;the revenue earned from a sale is not impacted by the inventory costing method chosen.On the other hand,cost of goods sold is directly affected by the inventory costing method chosen and,as a result,gross profit and net income would also be affected.

Which of the Following Would Not Be Affected by the Choice