All Else Being Equal, Which of the Following Statements Is

question 82

Multiple Choice

All else being equal, which of the following statements is correct for a company that uses the FIFO costing formula with a perpetual inventory system (compared to a periodic system) ?

• A) The value of the ending inventory would be higher under a periodic system.
• B) The value of the ending inventory would be lower under a periodic system.
• C) The value of the ending inventory would be the same under both systems.
• D) The periodic system would not require any additional entries at the end of the period.

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Definitions:

NAICS

The North American Industry Classification System, a standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

Industry Definitions

Specific terms and jargon that are commonly accepted and used within a particular sector or field of business.

Government Units

Administrative divisions within a government structure tasked with specific functions or responsibilities, such as departments, agencies, or commissions.

Constituents

Individuals or groups with a vested interest in the outcomes of an organization's decisions, policies, and activities.