Essay
A survey of major U.S. companies revealed that 77% of those companies used either LIFO or FIFO cost flow methods, while 19% used average cost, and only 4% used other methods.
Requirement
Provide brief, yet concise responses to the following questions.
a. Why are LIFO and FIFO so popular?
b. Since computers and inventory management software are readily available, why aren't more companies using specific identification?
Correct Answer:
Verified
a. FIFO and LIFO are based on cost flow ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q23: IFRS defines market for lower-of-cost-or market as<br>A)net
Q111: Which inventory costing method should a gasoline
Q122: A manufacturer's inventory consists of raw materials,work
Q123: If a company has no beginning inventory
Q124: The Entertainment Center accumulates the following cost
Q128: The following information is available from the
Q129: Snug-As-A-Bug Blankets has the following inventory data:
Q163: Which of the following companies would most
Q181: A major criticism of the FIFO inventory
Q204: Management may choose any inventory costing method