Explain

1.) How does the Matching Principle relate to the Costs of Goods Sold ?

2.) Manufacturing companies can choose from several methods of valuing its inventory such as normal cost, weighted average and FIFO. This is true financial reporting. However, for taxes purposes, they may also elect the LIFO method. Why/when do you think choosing LIFO would be an advantage on their tax return?

3.) When creating a budget, when would one likely to choose doing quarterly budgets (adjusting every quarter) verses an annual budget?