Which of the Following Inventory Cost Flow Assumptions Produces the Same

question 71

Multiple Choice

Which of the following inventory cost flow assumptions produces the same ending inventory values under both the periodic and perpetual systems?

• A)FIFO
• B)LIFO
• C)average
• D)dollar-value LIFO

---

Definitions:

Increasing Expenses

A situation where the costs of operating a business or undertaking a project are rising.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, illustrating profit or loss.

Profit

The financial gain obtained when the revenues generated from a business activity exceed the expenses, costs, and taxes needed to sustain the activity.

Revenue

The income that a business receives from its normal business activities, usually from the sale of goods and services to customers.