All three methods of inventory cost formula will produce the same cumulative cost of goods sold over the life cycle of the business.

Question

Quizplus · Accepted Answer

Different inventory costing methods (FIFO, LIFO, and Average Cost) can lead to different costs of goods sold and ending inventory values due to variations in how they account for the costs of inventory items over time, especially in periods of inflation or deflation.

All Three Methods of Inventory Cost Formula Will Produce the Same