unit 8 accounting dq 4 - Assume you are the Chief Financial...

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Assume you are the Chief Financial Officer (CFO) for Dell and the Chief Executive Officer (CEO) asks you to look into changing valuation methods for Dell. What factors would you have to consider? Check out these references to assist you with your analysis. http://blog.accountingcoach.com/products-fifo-lifo/ http://findarticles.com/p/articles/mi_m0ITW/is_2_85/ ai_n14897182/ http://www.helium.com/items/112379-understanding-the- difference-between-fifo-and-lifo ===================================================================== Solution: There are numerous factors which need to be taken into consideration before changing the valuation methods or deciding which method needs to be selected for valuation of the inventories. The most commonly used methods are LIFO (last in first out) and FIFO (first in first out). Few of the major factors which need to be taken into consideration are as: 1. Present stage of the economy whether economy is undergoing the phase of inflation or deflation. In inflation FIFO method is helpful as the inventory acquired earlier at the
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This note was uploaded on 10/20/2011 for the course BUISNESS ab202 taught by Professor Millazzo during the Spring '11 term at Kaplan University.

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