In accounting for inventory,the assumed cost flow must match the physical goods flow.

Name: In accounting for inventory,the assumed cost flow must match the physical goods flow.
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In accounting, the assumed cost flow (such as FIFO, LIFO, or weighted average) does not need to match the physical flow of goods. These methods are used for financial reporting and tax purposes, not necessarily reflecting the actual movement of inventory.

In Accounting for Inventory,the Assumed Cost Flow Must Match the Physical