Under the FIFO Method,the Percentage of Completion of the Ending

question 47

True/False

Under the FIFO method,the percentage of completion of the ending inventory must be greater than the percentage of completion of the beginning inventory.

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Definitions:

Cost Basis

The original value or purchase price of an asset or investment for tax purposes, adjusted for dividends, splits, and returns of capital.

Lower-of-Cost-or-Market

An accounting principle requiring inventory to be recorded at either its cost or its market value, whichever is lower.

FIFO

A method of inventory valuation where goods first purchased or produced are assumed to be sold or used first, standing for "First In, First Out".

LIFO

Last-In, First-Out (LIFO) is an inventory valuation method whereby the most recently produced or acquired items are sold, used, or disposed of first.