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Latron Williams
on Oct 28, 2024

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Inventory turnover under LIFO is greater than inventory turnover under FIFO when unit costs are increasing.

Inventory Turnover

A ratio that measures how many times a company's inventory is sold and replaced over a specific period, highlighting the efficiency of inventory management.

FIFO

A method used in accounting to assign the cost of goods sold to the earliest purchased items in inventory, leading to different inventory value and profit measure from other methods.

  • Acquire knowledge about the impact of inventory turnover and the method for calculating it under different costing premises.
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Carrington PhillipsNov 03, 2024
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