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Question:
Which of the following is least likely regarding the perpetual and periodic inventory accounting systems:
A
If a company uses the weighted-average cost method, COGS and EI are the same as under FIFO if the periodic inventory system.
explanation
• If a company uses FIFO, COGS and EI are the same under the periodic and perpetual inventory systems.
• If a company uses separate identification, COGS and EI are the same under the periodic and perpetual inventory systems.
• If a company uses AVCO:
COGS and EI have similar values as their values under FIFO if the perpetual inventory system.
COGS and EI are different from their value under FIFO if the periodic inventory system.
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