During Periods of Rising Prices, a Perpetual Inventory System Would

question 78

Short Answer

During periods of rising prices, a perpetual inventory system would result in the same dollar amount of ending inventory as a periodic inventory system under which of the following inventory cost flow methods? $$\begin{array} { l l l } & \text { FIFO } & \text { LIFO } \\\text { a. } & \text { Yes } & \text { No } \\\text { b. } & \text { Yes } & \text { Yes } \\\text { c. } & \text { No } & \text { Yes } \\\text { d. } & \text { No } & \text { No }\end{array}$$

---

Definitions:

Undergraduates

Students pursuing their first degree, typically a bachelor's, at a college or university.

Widespread Optimism

A general feeling or belief, shared by a large number of people, that the future will be positive or beneficial, often occurring in periods of economic growth or societal progress.

Postwar Prosperity

A period of economic growth and widespread affluence following the end of a significant conflict, notably observed after World War II in several Western countries.

Unemployment

The state of being without a paid job despite actively looking for one, often used as an economic indicator.