Question: Cottesloe Ltd has been using the FIFO costing method to account for inventories for several years. The company also has a policy of paying out

Cottesloe Ltd has been using the FIFO costing method to account for inventories for several years. The company also has a policy of paying out all of its profits in cash dividends (cash payment to shareholders). What are the likely effects, adverse or otherwise, of continuing these policies?

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