Compare the effects of the different costing methods on the financial statements
-In order to pay the least income tax possible in periods of constant costs, the company should use which of the following inventory costing methods?

Question

Quizplus · Accepted Answer

In periods of constant costs, the choice of inventory costing method (FIFO, Perpetual, Average cost, Periodic) does not affect the cost of goods sold, net income, or taxes because the cost of inventory remains the same regardless of the method used. Therefore, the tax liability would be the same with any method chosen.

Compare the Effects of the Different Costing Methods on the Financial