Discuss the different inventory accounting methods that are used (and allowable) in GAAP. How do they...

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Accounting

Discuss the different inventory accounting methods that are used(and allowable) in GAAP. How do they differ from one another? Whywould you choose one over another? Choose a sample company,identify which method they use, and explain why.

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The different inventory accounting methods that are used and allowable in GAAP FIFO LIFO and WAC Firstinfirstout FIFO inventory valuation According to the firstinfirstout FIFO inventory valuation method its assumed that inventory items are sold in the order in which theyre manufactured or purchased In other words the oldest inventory items are sold first The FIFO method is widely used because companies typically sell products in the order in which theyre purchased so it best represents the actual flow of goods in a business Lastinfirstout LIFO inventory valuation The See Answer

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Discuss the different inventory accounting methods that are used (and allowable) in GAAP. How do they...

60.1K

Verified Solution

Question

Accounting

Discuss the different inventory accounting methods that are used(and allowable) in GAAP. How do they differ from one another? Whywould you choose one over another? Choose a sample company,identify which method they use, and explain why.

Answer & Explanation Solved by verified expert

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