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Cost flow assumptions and effects of inventory errors - Math Problem Example

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(Ans)- When we calculate Cost of Goods Sold (CGS) using FIFO, no matter what method we use, the earliest price of available goods is used no matter how many other buying transactions occur in the mean time. However while using LIFO; whenever we make a new purchase transaction, the cost per unit value changes to that of the latest purchase.
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Cost flow assumptions and effects of inventory errors essay example
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