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When a company picks an #inventorycostingmethod, it determines the accurate value of income and inventory they report on their financial statements.
For the most part, a company’s purchase prices are often constant. In such a case, the inventory costing method affects the cost of goods sold, inventory cost, gross margin, and net income. Therefore, companies should disclose the inventory costing methods, whether Process Costing, Standard Costing, or Absorption Costing were used on their #financialstatements.
https://inoday.com/blog/repres....ent-the-value-of-inv
