writing assignment[1]

writing assignment[1] - Selecting an inventory method that...

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Selecting an inventory method that provides tax minimization and profit maximization is essential for accountants and top management decision making. One of the biggest challenges is to forecast the cost behavior within several accounting periods, which would allow managers to make accurate decisions about which inventory method to use for their company. The two most popular inventory method types are LIFO (Last-in First-out) and FIFO (First in, first out). Provide statistics about usage In order to find an inventory method that would minimize the tax liability for a firm about to enter the microcomputer industry, we need to evaluate the cost behavior in the specific industry. Last-in; first-out (LIFO) method record the most recently purchased items to be sold first and under LIFO the ending inventory is the items we acquired first. LIFO is the most popular inventory method in the United State. According to Jeffrey Gramlich, LIFO produces lower gross income and lower tax liability during periods of rising costs and
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writing assignment[1] - Selecting an inventory method that...

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