Asked by
Latron Williams
on Oct 28, 2024Verified
Inventory turnover under LIFO is greater than inventory turnover under FIFO when unit costs are increasing.
Inventory Turnover
A ratio that measures how many times a company's inventory is sold and replaced over a specific period, highlighting the efficiency of inventory management.
FIFO
A method used in accounting to assign the cost of goods sold to the earliest purchased items in inventory, leading to different inventory value and profit measure from other methods.
- Acquire knowledge about the impact of inventory turnover and the method for calculating it under different costing premises.
Verified Answer
CP
Learning Objectives
- Acquire knowledge about the impact of inventory turnover and the method for calculating it under different costing premises.