Significantly this method offers a middle ground for

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Significantly, this method offers a middle ground for the determination of the ending stock, net income, and cost of goods sold during the period under evaluation. The inventory valuation methods are used in various management and accounting practices, and they help businesses in effective allocation of costs to inventory and sales. Significantly, if the value of manufacturing and purchasing materials were constant for an extended period, there would be no need for the selection of a stock valuation method, as any method would have resulted in the same costs. However, this concept is not applicable in the real world as the cost of purchasing and manufacturing do change over time.
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DISCUSSION QUESTIONS 4 References Gordon, E. A., Raedy, J. S., & Sannella, A. J. (2016). Intermediate accounting . New York, Pearson. Harris, P., & Harris, A. (2017). The positive outlook of the last in first out inventory methods. Journal of Business & Economics Research (Online) , 15 (1), 1. Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & managerial accounting . Hoboken, New Jersey: John Wiley & Sons.
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  • Spring '16
  • Revenue, FIFO and LIFO accounting, different inventory methods

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