Using the FIFO method of inventory valuation will always produce the same results whether a company uses perpetual or periodic inventory costing methods.

Question

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FIFO (First-In, First-Out) method of inventory valuation assumes that the oldest inventory is sold first. This method produces the same results regardless of whether a company uses perpetual or periodic inventory costing methods because both methods track the cost of inventory on a first-in, first-out basis.

Using the FIFO Method of Inventory Valuation Will Always Produce