Cost or Net Realisable Value, which ever is lower. Net realisable value can also include the cost of repairing damaged inventory to get it to a sellable condition.
I believe that it is FIFO and LIFO, which is first in first out and last in first out.
The inventory cost of a business inventory is poo
One can use FIFO, LIFO, or Average Costing as acceptable methods for accounting. Standard costing would be an unacceptable answer.
FIFO
The moving average cost calculation is used to determine the average cost of inventory by taking into account the cost of goods purchased over time. This method helps to smooth out fluctuations in costs and provides a more accurate representation of the overall cost of inventory.
Last-in, first-out (LIFO)
No, it's a description of a way of determining cost-of-goods-sold.
Beginning inventory plus net cost of purchases equals the total goods available for sale during a specific period. This figure is crucial for determining the cost of goods sold (COGS) when combined with ending inventory. It helps businesses assess their inventory management and financial performance.
There are different inventory costing methods an accountant can use for cost o goods sold accounting. The methods include last in, first out, average cost method, first in, first out, and specific identification method.
FIFO method is based on the actual cost of each particular unit of inventory. In this method, inventory which is purchased first is sold out first. It ensures that old inventory is not piled up in storage and most companies use this method to evaluate their inventory.
It is cost effective and simple for companies to implement since it reduces the number of physical inventory counts. It is also accepted as a method of determining cost of goods sold for income tax purposes by the IRS.
Cost Flow Assumption