Last In First Out (LIFO) Inventory Method - Accounting

The video tutorial explains the Last In, First Out (LIFO) inventory method, highlighting its cost flow assumption where the most recent purchases are the first to be expensed. It contrasts LIFO with FIFO and introduces the FISH concept. A practical example using Delta Company illustrates how LIFO is applied, emphasizing the conceptual understanding of cost flow over physical inventory movement.

How does LIFO impact the cost of goods sold (COGS) and inventory valuation?

What assumptions are made regarding the physical flow of inventory when using LIFO?