How a company values its inventory affects its income statement and bottom line. "Average cost" and "last in, first out," or LIFO, are two of the most common methods for valuing inventory. Both rely ...

Learn how GAAP applies to a company's inventory reserves, using cost or market value methods, and its impact on accounting standards and financial planning.

The convergence of accelerating inflation and heightened tariff costs creates optimal conditions for adopting LIFO, but taxpayers need to understand the benefits and act promptly.

Learn how average cost flow assumption helps businesses manage costs efficiently in inventory, COGS, and ending inventory. Explore its applications and benefits.

Companies have used the retail method of inventory accounting for many years. According to the Committee on Ways and Means, the retail inventory method has been the best accounting method since 1941.

Wondering about FIFO vs LIFO? Learn about the two inventory valuation methods and which one is best for you. Many, or all, of the products featured on this page are from our advertising partners who ...

Learn what inventory accounting is, how it works, and key methods like FIFO, LIFO, and WAC. Includes real-world examples, tips, and best practices. I like to think of inventory accounting like ...

Calculating the cost of goods sold gives a business insight into its performance and helps calculate profit. Many, or all, of the products featured on this page are from our advertising partners who ...

Opinions expressed by Entrepreneur contributors are their own. Q: I have just started an online store where I will hold some inventory and want to know how I will be taxed, what tax forms I need to ...