The cost of goods sold reported on an income statement is not affected by the inventory valuation method the firm uses.

Question

Quizplus · Accepted Answer

The cost of goods sold reported on an income statement is affected by the inventory valuation method the firm uses. Different inventory valuation methods (FIFO, LIFO, weighted average, etc.) will result in different values for cost of goods sold and thus affect the reported profitability of the company.

The Cost of Goods Sold Reported on an Income Statement