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FINANCIAL ANALYSIS - Coggle Diagram
FINANCIAL ANALYSIS
VALUATION OF INVENTORIES
FIRST IN, FIRST OUT
This method assumes that the first goods purchased will be those that will be sold first and those that remain in stock will correspond to the last purchases
FIRST IN, LAST OUT
It is based on the idea that speculative inventory gains should not be recognized in a market where prices are constantly increasing, since products bought and sold should be replaced by others at higher prices.
AVERAGE COST
If the prices of the products you buy fluctuate frequently, it is very convenient to use the average cost method.
PHYSICAL INVENTORY
Written instructions are prepared, which should be studied by all those involved in the counting and supervision of the Inventory
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