Cost of Inventory and costing methods Assignment Help from myhomeworkhelp.com
For you are a student involved with the subject of Accountancy, then you are aware of the fact that Cost of Inventory and costing methods happens to be a very crucial part of this subject. So, it will only do you good if you happen to get the concept of this topic related to Cost of Inventory. We know that this subject is that easy that you will become a pro without the proper help. Thus, we at myhomeworkhelp.com are here to provide you with all the help you need.
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About Cost of Inventory and Costing Methods
In simple words Cost of Inventory can be explained as cost of merchandise purchased less discount which have been taken and also addition of any duties or transportation costs which have to be paid by the purchaser. In this case, if the merchandise in question have to made prepared for making a sale or assembled for the same purpose then here this cost will also be regarded as a part of the cost of inventory.
Now comes the time to talk about the types of inventory costing methods, which is a cause of nightmare for a lot of students dealing with this topic. Given below are the types of this costing method:
- FIFO (First in, First out)
- LIFO (Last in, First out)
- Specific Identification Method, and
- Average Cost Method
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