LIFO Layers refer to the distinct cost levels created under the Last-In, First-Out (LIFO) inventory valuation method. Each LIFO layer represents a batch of inventory costs added in a specific period, which remains intact until inventory levels fall below the quantity of that layer. This concept is crucial for understanding inventory cost flow and financial reporting implications. LIFO Layers are particularly significant in periods of fluctuating prices.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
