Choice of inventory costing method impact reported profits

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Explain how the perpetual and periodic inventory systems differ, especially in determining Cost of Goods Sold and Ending Inventory? Once a retailer has chosen the inventory system they then have a choice of inventory costing methods: First-In-First-Out (FIFO), Last-In-First-Out (LIFO), weighted average and specific identification. In times of changing inventory prices (both inflation and deflation) how can the choice of the inventory costing method impact reported profits?

Reference no: EM13488915

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