Learn how the flow of costs impacts manufacturing firms, covering raw materials, work-in-process, finished goods, and cost of goods sold with practical examples and methods.

The acronyms FIFO and LIFO identify methods for figuring the cost of goods sold when the price of your inventory has changed over time. With LIFO, you determine the price by assuming the most recent ...

Last-in, first-out (LIFO) and first-in, first-out (FIFO) are two common inventory valuation methods used by companies in accounting. Inventory valuation is the process of assigning value to materials, ...

Download this blog as a PDF to revisit it whenever you want. We’ll email you a copy. When Susan first opened her pet supply store, she quickly discovered her vegan pumpkin dog treats were a huge hit ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Problem Statement is as below: A concept you are hopefully familiar with is cost…roughly defined as “the amount you pay for something”. In Wall Street Office, we often deal with cost, but we ...

The recent runup in oil prices and general inflation have boosted tax benefits from the “last-in, first-out” (LIFO) inventory accounting tax break. LIFO tax expenditures, or foregone federal tax ...