If a company uses the FIFO cost flow method, the cost of goods sold for the period will be the same under both perpetual and periodic inventory systems.

Question

Quizplus · Accepted Answer

The cost of goods sold under the FIFO method remains the same whether using a perpetual or periodic inventory system because the first items purchased (and therefore the earliest, lowest costs) are assumed to be the first items sold.

If a Company Uses the FIFO Cost Flow Method, the Cost