Let’s say you use LIFO instead of FIFO to value your inventory. If we assume all other factors stay the same, your cost of goods sold would increase because the most recent, and therefore most expensive, items are included in the calculation. This change would result in a lower inventory...
A company using the LIFO inventory method reports a LIFO reserve at year-end of 85 000, which is 20 000 lower than the prior year. If the company had used FIFO instead of LIFO in that year, the company’s financial statements would have reported:() A. a lower cost of goods sold, ...
Definition of FIFO and LIFO FIFO and LIFO pertain to the flow of products’ costs out of inventory to the cost of goods sold that is reported on the income statement. First, if the costs of the inventory items never change, there will be no difference whether FIFO or LIFO is used. The...
Which accounting method is more conservative: LIFO or FIFO? Explain. How does one determine the difference in earnings through the use of LIFO instead of FIFO? What are the main advantages of using FIFO and LIFO? What do you understand by LIFO in accounting?
Which accounting method is more conservative: LIFO or FIFO? Explain. Explain why Hewlett-Packard uses FIFO while General Mills uses LIFO. What are the advantages and disadvantages of LIFO? How does one determine the difference in earnings through the use of LIFO inst...
Currently, the majority of firms value their inventory using one of two methods, the LIFO method or the First in, First out valuation method (FIFO). The use of LIFO instead of FIFO will have an impact on a firm’s net income, total assets, and noncurrent liabilities. An analysis ...
4. If Karp had used FIFO instead of LIFO, Karp’s retained earnings as of 31 December 2009 would have been higher by an amount closest to: 选项: A. $117 million. B. $124 million.C. $155 million. 解释: B is correct.Karp...
This setting may have a Configuration Service Provider (CSP) equivalent that can be used instead. To determine if a CSP for this setting exists, see the description below. Change the order in which CMAS alert messages are displayed, from the default FIFO to LIFO. If the phone receives ...
The FIFO (“First-In, First-Out”) method means that the cost of a company’s oldest inventory is used in the COGS (Cost of Goods Sold) calculation. LIFO (“Last-In, First-Out”) means that the cost of a company’s most recent inventory is used instead....
If the company uses the FIFO inventory method instead of LIFO, the company"s 2009 gross profit margin is closest to: A.22.9%B.29.8%C.33.2% 点击查看答案&解析手机看题 单项选择题 During periods of rising prices, which of the following statements is correct A.LIFO COGS > weighted average COG...