Which of the following statements is/are true?
A)Valuing inventory under LIFO may produce different results depending on whether a perpetual or periodic inventory system is used.
B)Valuing inventory under the weighted average cost method always produces the same results using either a perpetual or periodic inventory system.
C)Valuing inventory under FIFO may produce different results depending on whether a perpetual or periodic inventory system is used.
D)All of the answers are true.

Question

Quizplus · Accepted Answer

A) Under LIFO (Last-In, First-Out), the valuation of inventory can indeed differ between perpetual and periodic systems because the timing of when costs are recognized can affect the cost of goods sold and ending inventory values. In a perpetual system, inventory transactions are recorded continuously, affecting the inventory and cost of goods sold with each transaction. In contrast, a periodic system only updates inventory and cost of goods sold at the end of a period, which can lead to different inventory valuations under LIFO.

Which of the Following Statements Is/are True