Match each description to the appropriate cost flow assumption (a-c).
-Produces the same cost of merchandise sold under both the periodic and the perpetual inventory systems
A)FIFO
B)LIFO
C)Weighted average

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) produces the same cost of merchandise sold under both the periodic and the perpetual inventory systems because it assumes that the oldest inventory items are sold first, which does not change whether inventory is tracked continuously (perpetual) or at the end of the period (periodic).

Match Each Description to the Appropriate Cost Flow Assumption (A-C)