Inventory Valuation
Inventory Valuation is the method used to calculate the monetary value of a company's inventory at the end of an accounting period. Common valuation methods include FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost. The chosen method affects the cost of goods sold, gross profit, and net income reported on financial statements, making it a critical consideration for financial analysis and reporting.
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