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Explain the difference between the FIFO method of inventory valuation and the LIFO method. (a)...

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Accounting

Explain the difference between the FIFO method of inventory valuation and the LIFO method.

(a) Which method of inventory results in an inventory valuation that reflects current costs?

(b) Which method provides the best matching of costs with revenues?

(c) If unit costs are rising and inventory levels are constant or increasing, which method of inventory valuation will result in the lowest net income? Why?

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