Which Inventory Cost Flow Assumption Will Provide the Same Amounts

question 97

Multiple Choice

Which inventory cost flow assumption will provide the same amounts for ending inventory and cost of goods sold under both the periodic and perpetual inventory systems?

• A) FIFO
• B) LIFO
• C) Average cost
• D) NIFO

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Definitions:

Credibility

The quality of being trusted and believed in.

Benefits Estimation

The process of determining the potential advantages or outcomes of a project or decision.

Cost-Effectiveness Evaluation

The process of analyzing various alternatives in order to identify the one that provides the best outcomes relative to costs.

Cost-Benefit Evaluation

An analysis process that compares the estimated costs and benefits of a project or decision to determine its feasibility or value.