Asked by
Viridiana Martin
on Oct 16, 2024
Verified
Assuming items in inventory were purchased at different prices,the inventory cost method used affects net income.
Inventory Cost Method
An accounting technique used to determine the value of a business's inventory and cost of goods sold, such as FIFO (First In, First Out) or LIFO (Last In, First Out) methods.
Net Income
The total profit of a company after all expenses and taxes have been deducted from revenues, indicating financial performance over a specific period.
- Acquire knowledge on the repercussions of utilizing inventory costing strategies (FIFO, LIFO, Weighted Average) on financial disclosures.
- Ascertain the effects of inventory management choices on gross profit and net income.
Verified Answer
AV
Learning Objectives
- Acquire knowledge on the repercussions of utilizing inventory costing strategies (FIFO, LIFO, Weighted Average) on financial disclosures.
- Ascertain the effects of inventory management choices on gross profit and net income.
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