How a company values its inventory affects its income statement and bottom line. "Average cost" and "last in, first out," or LIFO, are two of the most common methods for valuing inventory. Both rely ...

The accounting for the costs of inventory depends on the cost flow method you chose. The four ones in common use are last in, first out (LIFO), first in, first out (FIFO), specific identification and ...

Learn about the methods of calculating and tracking inventory that are used in retail accounting.

Learn how average cost flow assumption helps businesses manage costs efficiently in inventory, COGS, and ending inventory. Explore its applications and benefits.