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ACC100 discussion question

11/08/2020 Client: papadok01 Deadline: 3 days

Part 1: Post a Response


View this short introduction to the discussion.


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Per the video summary, there are three (3) primary methods used by companies to assign costs to inventory and cost of goods sold: LIFO, FIFO, and Weighted Average. Each method assumes a particular pattern for how costs flow through inventory, but this is not a guarantee of how the inventory will actually flow. With each method comes a number of pros and cons that a company must consider when implementing its inventory management strategy. Select a company below to learn more about their chosen method. Then discuss the benefits of the chosen method taking into consideration how that particular method impacts the calculation of the inventory account, the cost of goods sold account, and the financial statements for that company.


Target - Uses LIFO


Amazon - Uses FIFO


FedEx - Uses Weighted Average


TargetAmazonFedEx


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