If companies have identical inventoriable costs but use different inventory flow assumptions when the cost of goods has not been constant, then the

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Quizplus · Accepted Answer

The cost of goods available for sale remains the same regardless of the inventory flow assumption used (FIFO, LIFO, or average cost), as it is determined by the total cost of goods purchased plus the beginning inventory. Different inventory flow assumptions affect the allocation of costs between the cost of goods sold and ending inventory, but not the total cost of goods available for sale.

If Companies Have Identical Inventoriable Costs but Use Different Inventory