When purchase prices do not change, the choice of an inventory costing method is unimportant.

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If purchase prices do not change, the cost of goods sold and ending inventory values will remain the same regardless of the inventory costing method used. Therefore, the choice of an inventory costing method is unimportant. However, if purchase prices do change, the choice of inventory costing method can have a significant impact on the cost of goods sold and ending inventory values reported on the financial statements.

When Purchase Prices Do Not Change, the Choice of an Inventory