Using the FIFO method of inventory valuation will always produce the same results for cost of goods sold and ending inventory whether a company uses perpetual or periodic inventory costing methods.

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) method assumes that the oldest inventory is sold first. Therefore, the cost of goods sold will be the same regardless of whether a company uses perpetual or periodic inventory costing methods.

Using the FIFO Method of Inventory Valuation Will Always Produce