Question: Shepherd Cycles used the FIFO inventory method in 2010. Shepherd Cycles plans to continue using the FIFO method in future years. Requirements: R1. Which inventory
Shepherd Cycles used the FIFO inventory method in 2010. Shepherd Cycles plans to continue using the FIFO method in future years. Requirements: R1. Which inventory principle is most relevant to Shepherds decision? R2. Shepherd Cycles does not expect prices to change dramatically and wants to use a method that averages price changes. 2. Shepherd Cycles does not expect prices to change dramatically and wants to use a method that averages price changes. Requirements: R1. Which inventory method would best meet Shepherds goal? R2. What if Shepherd wanted to expense out the newer purchases of goods instead? Which inventory would best meet that need?
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