The perpetual and periodic inventory systems will produce identical cost of goods sold and ending inventory balances using which of the following cost flow assumptions?

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) is the cost flow assumption under which both perpetual and periodic inventory systems will produce identical cost of goods sold and ending inventory balances because it assumes that the oldest inventory items are sold first, regardless of the system used to track inventory.

The Perpetual and Periodic Inventory Systems Will Produce Identical Cost