Produces the same cost of merchandise sold under both the periodic and the perpetual inventory systems

A) FIFO
B) LIFO
C) Weighted average

Cost Flow Assumption

An accounting method used to determine the cost of goods sold and ending inventory, such as FIFO, LIFO, or average cost.

Periodic

An accounting system where inventory and cost of goods sold are determined at the end of an accounting period, rather than tracked continuously.

Perpetual

A method of inventory management where updates are made continuously to reflect sales and purchases.