FIFO, LIFO, and Average Costing
See how when I increase the cost of an item, it doesn’t change the value of what’s already on the balance sheet.
Then, when I sell that item, it uses the original cost — that’s how much that item was at the time!
See how when I increase the cost of an item, it doesn’t change the value of what’s already on the balance sheet.
Then, when I sell that item, it uses the original cost — that’s how much that item was at the time!
