Special Report on
Program lifo or fifo Files
Program lifo or fifo Files - Trends
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It is widely understood that a disadvantage of LIFO is that it assigns the oldest inventory costs to the inventory account, which, when prices are changing, can result in an inventory value that is useless as a measure of current value. FIFO, however, avoids this disadvantage by assigning the most current costs to inventory. The purpose of this article is to explain a simple adjustment that restates LIFO inventory to the more current cost based FIFO value and analyze effects of this adjustment. We begin by demonstrating the LIFO adjustment and explaining its effect on one company. This is followed by an analysis of the effects ...
You will receive inventory items, sell inventory items, possibly even build inventory items (assemblies), and everything will balance out. If that describes your company, great! For the rest of us, though, there are times when we will need to make inventory adjustments . The most common question I run into here is “do I make a quantity or a value adjustment?” There are a lot of reasons why you might have to make an inventory adjustment. For example: Damage or Theft: You can lose items if they are stolen, or if they are damaged in an accident or catastrophe. Physical Inventory Adjustments: ... Read More
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