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

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Seventy-six percent of chemical companies use the LIFO inventory method for the costing of inventories, whereas only 9 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 while most companies in the computer industry do not?


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Principles of Accounting

ISBN: 978-1439037744

11th Edition

Authors: Needles, Powers, crosson

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