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Unformatted text preview: liquidations? A pool groups items of a similar nature, thus only instead of identical units, the company combines and counts as a group a number of similar units or products. This specific goods pooled lifo approach usually results in fewer lifo liquidations because the reduction of one quantity in the pool may be offset in an increase in another. (5) What is the dollar-value method of LIFO inventory valuation? What advantage does the dollar-value method have over the specific goods approach of LIFO inventory valuation? Determines and measures any increases and decreases in a pool in terms of total dollar value, not the physical quantity of the goods in the inventory pool. Advantage: Companies may include a broader range of goods in a dollar value lifo pool. A dollar value lifo pool permits replacement of goods that are similar items, similar in use, or interchangeable....
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- Spring '08
- Tax law, FIFO and LIFO accounting, lifo reserve, LIFO conformity rule