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The accounting objective that best relates to the LIFO (Last In, First Out) method is the matching principle, which aims to match revenues with the expenses incurred to generate them within the same period. By using LIFO, companies can align their cost of goods sold (COGS) with the more recent costs of inventory, typically resulting in lower taxable income during periods of rising prices. This approach can also provide a more accurate reflection of current market conditions and inventory valuation on the balance sheet.
What else can I help you with?
What is LIFO method?
what is the difference beyween lifo and fifo
Is the moving average inventory method GAAP?
Moving average inventory method is not GAAP (generally accepted accounting principles). LIFO (last in, first out) or FIFO (first in, first out) are GAAP. FIFO is the most common method and easy to compute; however LIFO may be used but is much more complicated to compute unless your businesses computer system computes the LIFO computation.
What is a lifo method?
In Lifo method goods received in last are used first in production that is means by last in first out method.
What is an acceptable method of determining inventory cost under GAAP?
One can use FIFO, LIFO, or Average Costing as acceptable methods for accounting. Standard costing would be an unacceptable answer.
What method of inventory cost flows is the cost flow assumed in reverse order?
THERE ARE THREE METHODS OF INVENTORY COSTS FLOW. 1: LIFO=first in first out 2; LIFO= last in first out 3: AVERAGE method and your answer is LIFO
What are the new approaches used in cost accounting?
cost of production report lifo method fifo method
What stock valuation method is acceptable according to the accounting standard?
they are twoo: FIFO and LIFO
What is LIFO method?
what is the difference beyween lifo and fifo
How do you calculate lifo reserve?
The LIFO reserve is calculated by taking the difference between the inventory reported under the Last In, First Out (LIFO) method and the inventory that would have been reported under the First In, First Out (FIFO) method. It reflects the amount by which LIFO inventory is less than FIFO inventory. To calculate it, you subtract the LIFO inventory balance from the FIFO inventory balance at the end of a reporting period. This reserve is important for understanding the tax implications and financial health of a company using LIFO accounting.
Is the moving average inventory method GAAP?
Moving average inventory method is not GAAP (generally accepted accounting principles). LIFO (last in, first out) or FIFO (first in, first out) are GAAP. FIFO is the most common method and easy to compute; however LIFO may be used but is much more complicated to compute unless your businesses computer system computes the LIFO computation.
What is a lifo method?
In Lifo method goods received in last are used first in production that is means by last in first out method.
Does Target use the lifo fifo or average-cost inventory method?
fifo
What is an acceptable method of determining inventory cost under GAAP?
One can use FIFO, LIFO, or Average Costing as acceptable methods for accounting. Standard costing would be an unacceptable answer.
To determine the value of a LIFO layer using dollar-value LIFO retail method you would?
b
LIFO inventory accounting for gross profit calculation assumes what?
Last In First Out
What method of inventory cost flows is the cost flow assumed in reverse order?
THERE ARE THREE METHODS OF INVENTORY COSTS FLOW. 1: LIFO=first in first out 2; LIFO= last in first out 3: AVERAGE method and your answer is LIFO
Inventory aging system based on FIFO and LIFO method?
FIFO First in first out LIFO Last in last out
