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Retail Inventory Method
An accounting procedure for estimating inventory value by applying a percentage cost-to-retail price.
Inventory Value
The total cost or market value of all items held in inventory, including raw materials, work-in-progress, and finished goods.
FIFO Cost Flow Assumption
An inventory valuation method where goods purchased first are the first sold, assuming costs are charged in the order in which they are incurred.
LIFO Cost Flow Assumption
An inventory valuation method that assumes the last items added to inventory are the first sold, affecting the cost of goods sold and ending inventory value.
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