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

Question

Quizplus · Accepted Answer

With the perpetual method of accounting for inventory, the costing assumption, such as first-in first-out, is applied to each sale via stock cards or computer records. This allows for real-time tracking of inventory costs and provides accurate cost of goods sold information for each sale.

With the Perpetual Method of Accounting for Inventory, the Costing