Question Details

The moving-average cost flow assumption for a perpetual inventory system 


True or false 
a1.	In all cases when average-costing is used, the cost of goods sold would be the same whether a perpetual or periodic system is used.
	a2.	The moving-average cost flow assumption for a perpetual inventory system and the average-cost cost flow assumption for a periodic inventory system will allocate the same amounts to ending inventory and cost of goods sold.
	a3.	Companies have the choice of physically counting inventory on hand at the end of the year or using the gross profit method to estimate the ending inventory.
	a4.	The retail inventory method requires a company to value its inventory on the statement of financial position at retail prices.
	a5.	In applying the LIFO assumption in a perpetual inventory system, the cost of the units most recently purchased prior to sale is allocated first to the units sold.




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