in fact there is no diff.
suppose
Following are inventory valuation methods: 1 - Lifo (Last in first out) 2 - Fifo (First in first out) 3 - Average method.
Weighted average inventory valuation method is method in which inventory purchased at any price is put together to calculate one price for allocation in contrast to FIFO or LIFO.
lifo
in fact there is no diff.
suppose
Following are inventory valuation methods: 1 - Lifo (Last in first out) 2 - Fifo (First in first out) 3 - Average method.
Weighted average inventory valuation method is method in which inventory purchased at any price is put together to calculate one price for allocation in contrast to FIFO or LIFO.
lifo
Revenue-Cost of Goods Sold(CGS)=Gross Margin. The valuation of inventory drives the cost of goods sold (CGS). The higher the value of your inventory, the higher your CGS, thus lower gross margin. The lower the valuation of your inventory, the lower your CGS, thus higher gross margins.
FIFO
Perpetual system Perpetual system
To get to your inventory on farm story you have to go to tool. After that go to edit and on the bottom left you will see a chest like image. That is your inventory.
lifo
Perpetual system
The assertion being tested when auditors walk through the warehouse looking for obsolete inventory is the existence assertion. This is to verify that the inventory physically exists and is recorded in the company's inventory records. Additionally, auditors may also be testing the valuation assertion to ensure that the inventory is appropriately valued on the financial statements.