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BUS 591 Week 3 DQ 2 Inventory Valuation Methods

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Identify the differences between F.I.F.O., L.I.F.O., and theaverage-costmethodof inventory valuation. Be sure to include the effects of each method oncost of goods soldandnet incomein your answer. Also discuss the differences between the physical movement of goods and cost flow assumptions. Your answer should illustrate understanding of the three major inventory valuation methods, and the relationship between physical inventory flow and cost flow assumptions. Respond to at least two of your classmates’ posts.

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