Discussion 2 - Merchandise Inventory - Discussion 2 Merchandise Inventory Describe the inventory valuation methods FIFO and LIFO FIFO(First in First out

Discussion 2 - Merchandise Inventory - Discussion 2...

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Discussion 2: Merchandise Inventory Describe the inventory valuation methods FIFO and LIFO. FIFO (First in, First out) is the accounting method used in inventory where the items are sold in the order in which it is received. Items that were received first are sold first; this method is used by many businesses whose products have a shelf life. LIFO (Last in, First out) is an inventory cost method that is opposite of FIFO where items produced or received last are sold first.

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