Given the same purchase and sales data,and assuming the cost of inventory is rising,the costing methods for inventory will result in different amounts for sales revenue.

Question

Quizplus · Accepted Answer

Sales revenue is calculated based on the selling price of the goods, not on the cost of inventory or the inventory costing method used (such as FIFO, LIFO, or weighted average). Inventory costing methods affect the cost of goods sold and ending inventory valuation, not sales revenue.

Given the Same Purchase and Sales Data,and Assuming the Cost