When the average-cost method is applied to a perpetual inventory system,the sale and purchase of goods will not change the unit cost of the goods that remain in inventory.

Question

Quizplus · Accepted Answer

In a perpetual inventory system using the average-cost method, the unit cost of goods in inventory is recalculated after each purchase, affecting the cost of goods sold and the remaining inventory.

When the Average-Cost Method Is Applied to a Perpetual Inventory