Which of the following statements is true?

Question

Quizplus · Accepted Answer

Valuing inventory under LIFO may produce different results depending on whether a perpetual or periodic inventory system is used. This is because LIFO assumes that the most recent inventory purchases are sold first; however, under a periodic system, the inventory is only updated at the end of the accounting period, which may result in different inventory values compared to a perpetual system where inventory is continuously updated. The other statements are not entirely accurate, as valuing inventory under the weighted average cost method may produce different results if the cost of inventory fluctuates, and FIFO generally produces consistent results regardless of the inventory system used.

Which of the Following Statements Is True