A number of companies have adopted a just-in-time procedure for acquiring inventory. These companies have arrangements with
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1. Should the inventory costing method (FIFO or LIFO) have a material effect on cost of goods sold when a company adopts the just-in-time procedure and reduces inventory significantly?
2. Once a company has switched to the just-in-time procedure and has little inventory, should the inventory costing method (LIFO or FIFO) affect cost of goods sold?
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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