Using the last-in, first-out (LIFO)method of inventory valuation will always produce the same results whether a company uses perpetual or periodic inventory.

Question

Quizplus · Accepted Answer

This statement is false. LIFO can produce different results depending on whether a company uses perpetual or periodic inventory. In perpetual inventory, the cost of each unit sold is immediately recorded and the inventory balance is continuously updated, while in periodic inventory, the cost of goods sold is calculated at the end of the period based on an assumed average cost. This can lead to different inventory balances and cost of goods sold calculations, which in turn can affect the LIFO valuation.

Using the Last-In, First-Out (LIFO)method of Inventory Valuation Will Always