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Basic Question 10 of 23

The FIFO and weighted average inventory valuation methods would result in the same cost of goods sold for a period if beginning inventory was zero and costs were steadily declining during the period. True or False?

User Contributed Comments 5

User Comment
sarath If the ending inventory is zero means all the inventory is sold. then FIFO and weighted average will yield the same result.
faya If EI=0 then weighted ave = FIFO = LIFO because all stock is sold
bokica expect here the beg.inv. was zero
vatsal92 FIFO COGS will be higher and avergae inventory COGS will be lower.
choas69 why didnt they mention LIFO in the explanation x.x
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Learning Outcome Statements

explain liquidity and compare issuers' liquidity levels

CFA® 2025 Level I Curriculum, Volume 2, Module 4.