Assuming that costs are changing during the accounting period,under the last-in,first-out inventory costing method,the amount of cost of goods sold calculated using the perpetual inventory system will usually differ from the amount calculated using the periodic inventory system.

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Under the last-in, first-out (LIFO) inventory costing method, the cost of goods sold is calculated based on the assumption that the most recent inventory purchases are sold first. If costs are changing during the accounting period, this means that the cost of the inventory purchased last (i.e. most recent) will differ from the cost of the inventory purchased earlier. As a result, the cost of goods sold calculated using the perpetual inventory system, which tracks inventory quantities and costs in real-time, will reflect these changing costs more accurately than the amount calculated using the periodic inventory system, which only updates inventory and cost of goods sold at the end of the accounting period. Therefore, the amount of cost of goods sold calculated using the perpetual inventory system will usually differ from the amount calculated using the periodic inventory system under the LIFO inventory costing method.

Assuming That Costs Are Changing During the Accounting Period,under the Last-In,first-Out