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First-In, First-Out
A method of valuing inventory that presumes items are sold in their purchase sequence, first selling the oldest products.
Purchase Order
An official document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
Approved Vendor
A supplier who has been vetted and meets a company's criteria for quality, reliability, and price.
Gross Profit Method
A method of estimating inventory cost that is based on the relationship of gross profit to sales.
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