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The differential equation is:
FIFO
"First In, First Out," an inventory valuation method where the first items placed in inventory are the first sold.
Gross Profit
The difference between sales revenue and the cost of goods sold, representing the basic profit from buying and selling goods or services.
LIFO Method
Last In, First Out method; an inventory valuation method where the last items placed in inventory are the first ones to be used or sold.
Rising Prices
An economic condition characterized by an increase in the cost of goods and services over time, affecting purchasing power.
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