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Inventory Cost Flow Assumptions
Assumptions made about how inventory costs move through a company's financial statements, including FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost methods.
Descriptive Statements
Statements that provide detailed information or explanation about a specific topic, often used in documentation or reporting.
LIFO
Last In, First Out, an inventory valuation method that assumes goods purchased last are the first ones sold, affecting the cost of goods sold and inventory valuation.
FIFO
First-In, First-Out; an inventory valuation method where goods first purchased or produced are sold or used first.
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