Assuming items in inventory were purchased at different prices,the inventory cost method used affects net income.

Question

Quizplus · Accepted Answer

The inventory cost method used affects the cost of goods sold and the value of ending inventory, which in turn affects the calculation of gross profit and net income. Different inventory cost methods, such as FIFO, LIFO, and average cost, can result in different amounts of cost of goods sold and ending inventory, and therefore different net income.

Assuming Items in Inventory Were Purchased at Different Prices,the Inventory