Question: You are comparing the inventory valuation methods used by two companies, Company P and Company Q, for the fiscal year 2023. Company Inventory Valuation (in

You are comparing the inventory valuation methods used by two companies, Company P and Company Q, for the fiscal year 2023.

Company

Inventory Valuation (in millions)

Company P

$75

Company Q

$90

Requirements:

  1. Analyze and identify the inventory valuation methods used by Company P and Company Q.
  2. Discuss potential reasons for any differences observed in the inventory valuation amounts between the two companies.

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