Application of FIFO and LIFO to Business Decisions - Application of FIFO and LIFO to Business Decisions Terms Replacement cost = Latest cost or current

Application of FIFO and LIFO to Business Decisions -...

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Application of FIFO and LIFO to Business Decisions Terms: Replacement cost = Latest cost or current cost Recent Costs = Latest costs or current costs Yields = Results in Matches = Matching rule = Revenue – Expenses Merchandise inventory = Current Asset = Balance sheet Cost of Goods Sold = Expenses – Income Statement ITEMS TO BE INCLUDED IN INVENTORY – If the business has title to the goods they must be included in inventory, even if they do not have physical possession. Consignment and good I transit are two examples.

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