Asked by Carrie Steel on Jun 29, 2024
Verified
Produces the same cost of merchandise sold under both the periodic and the perpetual inventory systems
A) FIFO
B) LIFO
C) Weighted average
Cost Flow Assumption
An accounting method used to determine the cost of goods sold and ending inventory, such as FIFO, LIFO, or average cost.
Periodic
An accounting system where inventory and cost of goods sold are determined at the end of an accounting period, rather than tracked continuously.
Perpetual
A method of inventory management where updates are made continuously to reflect sales and purchases.
- Absorb the significance and utilization of distinctive inventory costing tactics, for instance, FIFO, LIFO, Weighted Average, and Specific Identification.
Verified Answer
Learning Objectives
- Absorb the significance and utilization of distinctive inventory costing tactics, for instance, FIFO, LIFO, Weighted Average, and Specific Identification.
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