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(Solved): Identify The Differences Between F.I.F.O., L.I.F.O., And The Average-cost Method Of Inventory Valua...
- Identify the differences between F.I.F.O., L.I.F.O., and the
average-cost method of inventory valuation.
- Be sure to include the effects of each method on cost of goods sold and net income in your answer.
- Discuss the differences between the physical movement of goods
and cost flow assumptions.
- Your answer should illustrate understanding of the three major inventory valuation methods, and the relationship between physical inventory flow and cost flow assumptions.
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FIFO:-it means first in first out,as contained in name itself in this method it is considered that when sale is happen ,the items sold out will go from first came basis,hence the closing stock under t