If two companies have identical net sales and use different inventory methods,income from continuing operations will likely be identical also.

Question

Quizplus · Accepted Answer

Although net sales may be the same, different inventory methods such as first-in, first-out (FIFO) or last-in, first-out (LIFO) can result in different cost of goods sold and gross profit figures, which can ultimately affect income from continuing operations.

If Two Companies Have Identical Net Sales and Use Different