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Costing Inventories
The process of determining the value of inventory, including raw materials, work-in-progress, and finished goods, for financial reporting.
Homogeneous Items
Items that are of the same kind or nature, possessing common features or characteristics.
Inventory Cost Formula
The method used to determine the cost of goods sold, such as First-In, First-Out (FIFO), Last-In, First-Out (LIFO), or Average Cost method.
Physical Flow
This term refers to the actual movement of goods in and out of a warehouse or production facility.
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