Alleghany Technologies Incorporated disclosed in its annual report that:

Discuss why a liquidation of LIFO inventory quantities would reduce a company’s cost of goods sold. Does this event indicate that a firm is attempting to manage its earnings? Why or why not?

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...inventory usage resulted in liquidations of LIFO inventory quantities. These inventories were carried at differing costs prevailing in prior years as compared with the cost of current manufacturing cost and purchases. The effect of these LIFO liquidations was to increase cost of sales by $1.5 million in 2012, increase cost of sales by $0.1 million in 2011 and decrease cost of sales by $1.8 million in 2010.