See for weighted average inventory costing

A shortened reference to the conservatism principle

The accounting principle that guides accountants to select the less optimistic estimate when two estimates of amounts to be received or paid are about equally likely.

One who receives and holds goods owned by another party for the purpose of selling the goods for the owner.

An owner of goods who ships them to another party who will then sell the goods for the owner.

The accounting requirement that a company use the same accounting methods period after period so that the financial statements of succeeding periods will be comparable.

See materiality

An estimate of how many days it will take to convert the inventory on hand at the end of the period into accounts receivable or cash; calculated by dividing the ending inventory by cost of goods sold and multiplying the result by 365.

The pricing of an inventory under the assumption that inventory items are sold in the order acquired; the first items received were the first items sold.

The GAAP that requires financial statements (including footnotes) to report all relevant information about the operations and financial position of the entity.