Last in first out method, Data Structure & Algorithms

This method is the reverse of FIFO and assumes that each issue of stock is made from latest items received in the enterprises .Thus if the last lot to be received is not sufficient to meet an issue,then the balance is assumed to come from the previous lot received still available.The stock on hand is valued at the cost of the earliest items received and not drawn.Advocates of this method claims that it gives the most accurate representation of profits because it matches revenue with current costs.

The last in first out (LIFO) method of costing materials issued is based on the premise that materials units issued should carry the cost of the most recent purchase, although the physical flow may actually be different. The method assumes that the most recent cost (the approximate cost to replace the consumed units) is most significant in matching cost with revenue in the income determination procedure.

Under LIFO procedures, the objective is to charge the cost of current purchases to work in process or other operating expenses and to leave the oldest costs in the inventory. Several alternatives can be used to apply the LIFO method. Each procedure results in different costs for materials issued and the ending inventory, and consequently in a different profit. It is mandatory, therefore, to follow the chosen procedure consistently.

Posted Date: 2/28/2013 4:43:44 AM | Location : United States







Related Discussions:- Last in first out method, Assignment Help, Ask Question on Last in first out method, Get Answer, Expert's Help, Last in first out method Discussions

Write discussion on Last in first out method
Your posts are moderated
Related Questions
Advantages of First in First out (FIFO) Costing Advantages claimed for first in first  out (FIFO)  costing method are: 1. Materials used are drawn from the cost record in

Inorder traversal: The left sub tree is visited, then the node and then right sub-tree. Algorithm for inorder traversal is following: traverse left sub-tree visit node

Game trees An interesting application of trees is the playing of games such as tie-tac-toe, chess, nim, kalam, chess, go etc. We can picture the sequence of possible moves by m

Problem 1. You are asked to store Names of all 100 students of class A in your Learning Centre. Which data type will you use? What is its syntax? Explaining the data typ

Determine the types of JAVA Java has two parts... 1. Core language -- variables, arrays, objects o Java Virtual Machine (JVM) runs the core language o Core language is

(a) Write (delay ) as a special form for (lambda () ) and (force ), as discussed in class. (b) Write (stream-cons x y) as a special form, as discussed in class. (c) Write

for(int i = 0; i for (int j = n - 1; j >= i ; j--){ System.out.println(i+ " " + j);

Q. Show the various passes of bubble sort on the unsorted given list 11, 15, 2, 13, 6           Ans: The given data is as follows:- Pass 1:-     11   15   2     13

how we can convert a graph into tree

The fundamental element of linked list is a "record" structure of at least two fields. The object which holds the data & refers to the next element into the list is called a node .