Using either the FIFO and LIFO cost flow assumption will result in the same cost of goods sold when
A)the number of units in beginning and ending inventory are the same.
B)two consecutive years are combined.
C)the prices of the goods do not change.
D)lower-of-cost-or-market is applied.
E)none of the above

Question

Quizplus · Accepted Answer

Both FIFO and LIFO will result in the same cost of goods sold when the prices of goods do not change. However, in situations where prices do change, the choice between FIFO and LIFO can have a significant impact on the cost of goods sold. The other options listed do not necessarily affect the choice between FIFO and LIFO.

Using Either the FIFO and LIFO Cost Flow Assumption Will