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Inventory costing comes in many different sizes. LIFO, FIFO

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Inventory costing comes in many different sizes. LIFO, FIFO, weighted average, and moving average are just some of the methods under US GAAP.

Why do you think there are so many methods available under US GAPP (other than to keep accountants employed) and why would a company prefer one over the other?

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Solution Summary

Inventory costing comes in many different sizes. LIFO, FIFO, weighted average, and moving average are just some of the methods under US GAAP.

Why do you think there are so many methods available under US GAPP (other than to keep accountants employed) and why would a company prefer one over the other?

Solution Preview

Inventory costing comes in many different sizes. LIFO, FIFO, weighted average, and moving average are just some of the methods under US GAAP.

Why do you think there are so many methods available under US GAPP (other than to keep accountants employed) and why would a company prefer one over the other?

Solution:

It really depends on the type of company, as to which system they will decide to use. Depending on the type of inventory costing system used, it will affect the balances of the ...

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