Dollar Value LIFO

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Dollar Value LIFO is an inventory valuation method that adjusts for inflation by aggregating inventory into pools based on dollar value rather than physical units. This approach simplifies the Last-In, First-Out (LIFO) method by focusing on the monetary value of inventory layers, allowing businesses to account for price level changes over time. The dollar value LIFO method is particularly useful in periods of inflation, providing a more accurate reflection of inventory costs.

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