The choice of an inventory valuation method has little to no impact on gross profit and cost of sales.

Question

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The choice of inventory valuation method can have a significant impact on both gross profit and cost of sales. For example, using a first-in-first-out (FIFO) method may result in a higher gross profit and lower cost of sales compared to using a last-in-first-out (LIFO) method, due to the effect on the cost of goods sold. Similarly, using a weighted average cost method may result in different gross profit and cost of sales figures than using a specific identification method.

The Choice of an Inventory Valuation Method Has Little to No