“Inventory Costing Methods” Please respond to the following:
- Use the Internet to research the annual report of at least three (3) merchandising companies. Determine the costing method (Last In First Out [LIFO], First In First Out [FIFO], and weighted average) that is used to record inventory. Next, watch C. Pence’s video:
- Identify the primary benefits in using the costing method (LIFO, FIFO, and weighted average) that is used to record inventory. Explain at least three (3) reasons that would lead each of your chosen companies to switch to a different costing method.
preview of the answer..
The first in first out method is used by many merchandizing companies when it comes to the management of their inventory. These companies include Wal-Mart, KOHLS Corporation and Sears holdings. The method assumes that the goods that were purchased first are the ones that are sold first. The method matches how many goods flow into the company and with this it …
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