Introduction to Inventory Valuation Businesses that handle goods—whether raw materials, parts, or finished products—must decide how to value their inventory. Two of the most widely used methods are FIFO (First-In, First-Out) and LIFO (Last-In, First-Out). These methods don’t track specific physical items but instead provide a systematic way of assigning costs to products sold and … Continue reading FIFO vs LIFO Accounting: Definitions, Examples, Tax Implications, and Key Differences