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Perpetual Inventory System
An inventory accounting approach that instantly documents inventory purchases or sales using computerized point-of-sale systems and enterprise asset management software.
Inventory Ledger
A record that keeps track of the detailed inventory transactions of a business, including purchases, sales, returns, and write-offs.
Cost Flow
The pattern in which costs move through a business, beginning with the acquisition of raw materials and ending with the delivery of final products to consumers.
First-In, First-Out
A method of valuing inventory that presumes items are sold in their purchase sequence, first selling the oldest products.
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