The assignment of costs to cost of goods sold and inventory using FIFO usually yields different results depending on whether a perpetual or periodic system is used.

Question

Quizplus · Accepted Answer

Under both perpetual and periodic systems, FIFO (First-In, First-Out) will yield the same results for the assignment of costs to cost of goods sold and inventory because the order in which costs are assigned does not change with the type of inventory system.

The Assignment of Costs to Cost of Goods Sold and Inventory