Complete Financial Accoutning Discussion POST NO PLAGIARISM

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Business Finance

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NO PLGAIARISM

Accounting Inventory Methods

  • How do the different types of the Accounting Inventory Methods (FIFO, LIFO, or Weighted-Average) operate?
  • How does a firm go about choosing which Accounting Inventory Method works?

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Accounting Inventory Method

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Question One
How do the different types of the Accounting Inventory Methods (FIFO, LIFO, or
Weighted-Average) operate?
FIFO, LIFO and Weighted-Average are inventory accounting methods used to determine
the actual value of unsold inventory, transactions such as stock repurchases reported at the close
of accounting period as well as the cost of sold goods.
FIFO (First in First Out)- this is an accounting inventory method where a business
acknowledges the expenses of items from the inventory of the company are purchased first at
varying cost. Therefore, the oldest cost of a commodity in the inventory is the first to be
removed.
LIFO (Last in Last Out)- In this method of inventory accoun...


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