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Inventory Cost Formulas
Methods used to determine the cost of inventory sold and ending inventory value, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost.
FIFO
First In, First Out, an inventory valuation method that assumes that the first items placed in inventory are the first sold.
Net Realizable Value
The estimated selling price of goods minus the cost of their sale or disposal.
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