Inventory Cost Flow Assumptions | Principles of Accounting
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Answered: Which cost flow assumption generally results in the highest reported amount of net income when inventory costs are rising? Explain. | bartleby
Answered: Which cost flow assumption generally results in th…
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Answered: Which inventory cost flow assumption generally results …
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(Appendix) Describe the fundamental cost flow assumptions of the average cost, fifo, and lifo inventory costing methods.
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askfilo.com
Replying to @i in intro accounting class we learn three inventory cost flow assumptions (specific identification tracks each item and is therefore not an assumption): FIFO (first-in first-out), LIFO (last-in first-out), and average cost. We use these to compute our cost of goods sold. Even though perpetual inventory systems are much more common for large companies, I illustrate these cost flow assumptions using a periodic system. #accounting #study #explained #inventory #lifo #fifo #averagecost
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