Sixty-eight percent of chemical companies use the LIFO inventory method for the costing of inventories, whereas only

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Sixty-eight percent of chemical companies use the LIFO inventory method for the costing of inventories, whereas only 13 percent of computer equipment companies use LIFO. Describe the LIFO inventory method. What effects does it have on reported income, cash flows, and income taxes during periods of price changes? Why do you think so many chemical companies use LIFO and most companies in the computer industry do not?

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Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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