Lecture Fundamental accounting principles - Chapter 6: Inventories and cost of sales
Lecture Fundamental accounting principles - Chapter 6: Inventories and cost of sales
After studying this chapter you will be able to understand: What accounting principle most guides the allocation of cost of goods available for sale between ending inventory and cost of goods sold? Describe one advantage for each of the inventory costing methods: specific identification, FIFO, LIFO, and weighted average; when costs are rising, which method reports higher net income LIFO or FIFO?