With the perpetual method of accounting for inventory the first-in first-out assumption is applied to:

Question

Quizplus · Accepted Answer

With the perpetual method of accounting, the first-in first-out assumption is applied to each sale via stock cards or computer records. This means that the cost of the oldest inventory is matched against the revenue earned from the sale of the inventory, allowing for a more accurate cost of goods sold calculation.

With the Perpetual Method of Accounting for Inventory the First-In