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Average Cost Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.
Cost Of Merchandise Sold
The total expense of buying and preparing merchandise for sale, including the cost of the goods themselves and any additional expenses related to their sale.
Gross Profit
The amount of money a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.
FIFO Perpetual
An accounting method where the first items placed in inventory are the first ones sold, continuously tracking inventory levels.
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