2.9 Comparison of all Four Methods

Comparison of All Four Methods, Perpetual

The outcomes for gross margin, under each of these different cost assumptions, is summarized in Figure 2.101.

Comparison between Specific ID, FIFO, LIFO, and AVG respectively: Sales Revenue 11,340 minus the costs under each method: 7,260, 7,200, 7,380, or 7,253 equals Gross Margin under each method of 4,080, 4,140, 3,960, or 4,087.
Figure 2.101 Gross Margin Comparison By: Rice University Source: Openstax CC BY-NC-SA 4.0

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Financial and Managerial Accounting by Lolita Paff is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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