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Periodic Inventory System
A method of inventory valuation where updates to inventory records are made at specified periods, rather than continuously.
FIFO
"First-In, First-Out," an inventory valuation method where the first items purchased or produced are the first ones sold, affecting the cost of goods sold and ending inventory.
LIFO
Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.
Average Cost
A calculation that divides the total cost of goods available for sale by the total units available for sale, offering a way to determine the cost of an item's inventory.
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