debate 3

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you have to respond like a debate if you dont agree and if you do say why you agree atleast 8 or so sentaces



the lifo method and the fifo methods are parts of the cost flow assumptions. both methods are responsible for deciding what the value would be of inventory that has not been sold and they play a huge role in reporting purchase transactions. lifo method is an approach of last-in, first out and the fifo method is an approach of first in, first out. fifo are items or goods that are not sold are the ones that were newly added to the inventory. lifo consists of items or goods that are newly added being the first ones to sell.



another difference in flfo and lifo is the cost. in flfo there is no unexpected increase or decrease in cost of goods sold as there are in lifo. the unsold inventory is also greater in the lifo method than in the fifo method.
walther. (2012). principles of accounting: volume i. san diego, ca: bridgepoint education, inc.




the controller of sagehen enterprises believes that the company should switch from the lifo method to the fifo method. the controller’s bonus is based on the next income. it is the controller’s belief that the switch in inventory methods would increase the net income of the company. what are the differences between the lifo and fifo methods? lifo is last in first out, whereas, fifo is first in first out. lifo method requires the newest inventory to be sold first. on the other hand, fifo method requires the oldest inventory to be sold first. these are both methods determine the way goods/inventories are sold. with the fifo method, the cost of the inventory remains current; however, the cost of the inventory fluctuates with the lifo method. walther. (2012). principles of accounting: volume i. san diego, ca: bridgepoint education, inc
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