1 specific identification 2 first in first out fifo 3

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(1) Specific identification (2) First-in-first-out (FIFO) (3) Last-in-first-out (LIFO) (4) Average cost LIFO Liquidations can have a large impact on reported earnings. LIFO Reserve measures the cumulative effect of using LIFO, whereas LIFO Reserve measures the incremental effect of using LIFO this year. The Allowance for Excess/Obsolete Inventory estimates the portion of inventory that the company expects to not sell in the future; i.e., the portion of the deferred expense that should not be deferred. Next class Two assignments due at 1:00pm on Friday, February 2 Dow Chemical Company: Inventories Depreciation at Delta Air Lines and Singapore Airlines(A) (HBS case) Hints: (1) When answering question 3, use the average of the sum of gross value of flight equipment owned and leased for 1992 and 1993; (2) When answering question 3, simply apply different depreciation assumptions to calculate the hypothetical depreciation expense Long-lived assets Purchase and sale Depreciation and impairment What to look for in a statement of cash flows Midterm review

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