With the perpetual method of accounting for inventory, the costing assumption, such as first-in first-out, is applied to:
A) inventory at the end of the month.
B) cost of sales at the end of the accounting year.
C) each sale via stock cards or computer records.
D) the current asset inventory in the balance sheet.

Question

Quizplus · Accepted Answer

With the perpetual method, the costing assumption is applied to each sale via stock cards or computer records, allowing for real-time tracking and updating of inventory costs. This makes it easier to manage and adjust inventory levels, as well as provide accurate cost of goods sold information for financial reporting purposes.

With the Perpetual Method of Accounting for Inventory, the Costing