Unformatted text preview: must use LIFO for external financial reporting. So if the company switches from LIFO to the average cost method, their taxable income calculations will also have to change. 2. Even though the inventory remained stable during the first nine months of 2000, the cost of inventory will go down considering moving from a LIFO method to an average cost method. The average cost method will take away from the price as opposed to the LIFO method....
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- Spring '10
- Accounting, FIFO and LIFO accounting, average cost method, nine months, Jamie Hinson