Consider both upstream and downstream sales in same period

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The need for elimination of intercompany sales of inventory is made clear in the week's lesson as not to overstate sales and cost of goods sold as well as inventory. What impact, if any, does the choice of inventory valuation method (LIFO, FIFO, average) have on the elimination process? Does your answer change if you consider both upstream and downstream sales in the same period and different methods in use by the parent and subsidiary?

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Reference no: EM13813933

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