00:01
In this example, we're going to be talking about inventory valuation methods, specifically fifo, lifo, average cost, and specific identification.
00:10
Which one results in the highest costs of goods sold? this would be lifo, last in, first out.
00:16
Assuming inflating prices, the highest cost of goods sold, but be when we're sending the ones that we just had in, last in, first out.
00:25
Yields the highest net income.
00:27
This would be fifo.
00:28
If lifo results in the highest cost of goods sold, fifo results in the least because you're accounting for the way earlier prices, again, assuming rising inflation.
00:40
That means you would have less cost of goods sold, so a higher net income...