Inventory methods such as LIFO and FIFO deal more with cost flow than with goods flow.

Question

Quizplus · Accepted Answer

LIFO and FIFO are both cost flow assumptions used for inventory accounting. They determine which costs are assigned to goods sold and which are assigned to inventory on hand. These methods do not determine the physical flow of goods within a company, as this is typically tracked separately through the company's operations and logistics systems.

Inventory Methods Such as LIFO and FIFO Deal More with Cost