Every company has the ability to determine the inventory valuation method they will use and still be well within GAAP. However, each of these methods has an effect on financial statements and the users of that information should have a good understanding of the effects.

A research paper comparing and contrasting the procedures associated with the different types of inventory valuation methods and the effects they can have on the financial reporting for a company. The methods are the following:

Specific identification

Average for both COGS and EI

FIFO – (first-in, first-out) for COGS, and

LISH (last-in, still here) for EI

LIFO – (last-in, first0out) for COGS, and

FISH (first-in, still here) for EI

3-4 page(s) in length.

Three to five peer-reviewed journal articles are required. Reference all sources using APA format.