In a perpetual inventory system,
A)LIFO cost of goods sold will be the same as in a periodic inventory system.
B)average costs are based entirely on unit cost simple averages.
C)a new average is computed under the average cost method after each sale.
D)FIFO cost of goods sold will be the same as in a periodic inventory system.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, FIFO cost of goods sold will be the same as in a periodic inventory system because FIFO assumes that the oldest inventory items are sold first, regardless of the inventory system used.

In a Perpetual Inventory System