Dell Computer uses FIFO for inventory costing. Its costs are relatively steady from year-to-year. General Electric (GE), on the other hand, uses LIFO for its U.S. big machinery inventory and FIFO for international segments.

Choose ONE of the questions to discuss:

• As the accountant for Dell Computers, why would you choose FIFO inventory costing?
• As the accountant for General Electric (GE), US division, why would you choose LIFO inventory costing?
• What are the effects on the income statement and balance sheet of each of the inventory cost flow assumptions?
• What are the tax effects of each method?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Dell Computer Choosing FIFO Inventory Costing As the accountant for Dell Computersmy key ... View the full answer