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Scenario 9: What does Costing Method mean?
Problem reported by Tian Song - August 26, 2014 at 2:31 PM
Resolved
Employee Post
Costing method is a method defining how to account for the cost of goods sold.
 
FIFO - The First-In-First-Out Method (FIFO)
 
This method assumes that the first inventories bought are the first ones to be sold, and that inventories bought later are sold later.
 
 
LIFO - The Last-In-First-Out Method (LIFO)
 
This method assumes that the last inventories bought are the first ones to be sold, and that inventories bought first are sold last.
 
 
Average
 
Sell inventory items simultaneously with average cost method.
 
 
FIFO + Expiry Date
 
This is based on expiry date of item which logically FIFO.
 
 
 
For more information, you may refer to this link.

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