Question

Given the same purchase and sales data, and assuming the cost of inventory is rising, the costing methods for inventory will result in different amounts for sales revenue.

True

False

Answer 1

Solution:

The statement is false as the selling price would be same in different costing methods for inventory. Cost of inventory have no effect on Sales revenue. Further different costing methods affects the cost of inventory and cost of sales not the sales revenue.

Therefore, Given the same purchase and sales data, and assuming the cost of inventory is rising, the costing methods for inventory will not result in different amounts for sales revenue.

Hence, the staement is False.