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Periodic and perpetual inventory methods can result in a difference in how firms report losses of inventory. Lost inventory would be included in Costs of
Periodic and perpetual inventory methods can result in a difference in how firms report losses of inventory. Lost inventory would be included in Costs of goods sold for periodic firms and other gains or losses for perpetual firms. What characteristic of useful information is most directly affected by this difference in accounting methods?
Comparability
Verifiability
Faithful representation
Understandability
Relevance
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