Why Are the Amounts Determined for Ending Inventory and Cost

question 144

Essay

Why are the amounts determined for ending inventory and cost of goods sold the same under both the periodic and perpetual inventory systems when FIFO is used but not when LIFO is used?

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Definitions:

Long-linked Technology

Long-linked technology refers to a sequential process technology in which the output of one operation is the input for the next, often seen in manufacturing and assembly lines.

Mediating Technology

Tools or platforms that facilitate the efficient exchange of information, goods, or services between parties, often improving or streamlining processes.

Intensive Technology

Technology that focuses on significantly improving or intensifying processes, often leading to increased productivity or performance.

Customer Satisfaction

A measure of how products or services meet or exceed customer expectations, often considered crucial for business success.