QuestionJune 10, 2025

What inventory method(s)match the cost of goods sold (COGS) with the sales revenue for the same goods? Freight in method Periodic method Both periodic and perpetual method Perpetual method

What inventory method(s)match the cost of goods sold (COGS) with the sales revenue for the same goods? Freight in method Periodic method Both periodic and perpetual method Perpetual method
What inventory method(s)match the cost of goods sold (COGS) with the sales revenue
for the same goods?
Freight in method
Periodic method
Both periodic and perpetual method
Perpetual method

Solution
4.7(209 votes)

Answer

Perpetual method Explanation 1. Identify Inventory Methods The perpetual inventory method continuously updates inventory records and matches COGS with sales revenue as transactions occur. 2. Evaluate Other Methods Freight-in is not an inventory method; it refers to shipping costs. The periodic method updates inventory records at intervals, not matching COGS with sales immediately.

Explanation

1. Identify Inventory Methods<br /> The perpetual inventory method continuously updates inventory records and matches COGS with sales revenue as transactions occur.<br /><br />2. Evaluate Other Methods<br /> Freight-in is not an inventory method; it refers to shipping costs. The periodic method updates inventory records at intervals, not matching COGS with sales immediately.
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