The difference between the FIFO, LIFO, and average cost methods is that each of these methods of inventory costing makes a specific assumption about the flow of costs.

Name: The difference between the FIFO, LIFO, and average cost methods is that each of these methods of inventory costing makes a specific assumption about the flow of costs.
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Each of the three methods assumes a different flow of costs and determines the cost of goods sold and ending inventory accordingly.

The Difference Between the FIFO, LIFO, and Average Cost Methods