If a company uses the FIFO cost flow assumption, the cost of goods sold for the period will be the same under a perpetual or periodic inventory system.

Question

Quizplus · Accepted Answer

Under the FIFO cost flow assumption, the first inventory purchased is the first to be sold, regardless of whether a perpetual or periodic inventory system is used. Therefore, the cost of goods sold for the period will be the same under both systems.

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