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Unformatted text preview: Specific Identification: Identifies the cost of the specific item that was sold. Weighted Average: (total cost of goods available for sale/ total units available) Inventory turnover ratio COGS/Average Inventory Manager’s Choice: manager choice on two bases: 1. Net income effects (prefer to report high earnings on companies) 2. Income tax effects (prefer to pay the least amount of taxes possible that the law will allow and pay as late as possible; least-latest rule) LIFO is usually used on tax return because it usually results in lower income taxes....
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This note was uploaded on 03/19/2008 for the course ACCT 201 taught by Professor Anothony during the Fall '07 term at Michigan State University.
- Fall '07