Accounting Inventory
Accounting Inventory involves the tracking and management of goods and materials held by a business for the purpose of resale. This process includes recording the quantity, value, and location of inventory items to ensure accurate financial reporting and effective decision-making. Inventory accounting methods such as FIFO (First In, First Out) and LIFO (Last In, First Out) are commonly used to determine the cost of goods sold and ending inventory. Proper inventory management is crucial for businesses to optimize cash flow, minimize costs, and meet customer demand.
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