Asked by
Johnna Woodson
on Dec 16, 2024
Verified
The inventory cost formula that best matches cost and revenues is FIFO.
FIFO
"First In, First Out," a method used in inventory management and accounting where the goods first added to inventory are the first to be sold.
Inventory Cost Formula
The method used to determine the cost of goods available for sale or the cost of goods sold, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or Average Cost.
- Acquire knowledge on the basis for inventory cost formula selection and its implications for cost association.
Verified Answer
HR
Learning Objectives
- Acquire knowledge on the basis for inventory cost formula selection and its implications for cost association.
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