Last in first out or lifo, Cost Accounting

Last in first out or LIFO

LIFO is based upon the assumption such the stock purchased last is issued first. Stock valuation should here be based upon the prices ruling on acquisition of last stocks.

Advantages

1. Product costs tend to be based upon recent market prices and are thus realistic.

2. A charge to production is like closely concern to current price levels like possible

Disadvantages

1. Stocks are valued at the oldest prices.

2. This includes tedious calculations whether the price of materials fluctuates from time to time.

3. Comparison of one job along with another may be difficult and unfair.

Posted Date: 2/5/2013 5:25:59 AM | Location : United States







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

Write discussion on Last in first out or lifo
Your posts are moderated
Related Questions
The following information pertains to Tudor Logistics Company: 200X Information: Sales                                      $4,875,000 Selling expense

1) Define Elasticity.  If you have a product where elasticity is less than one, what does that mean?  Is it good, bad for the firm? 2) Why will firms not shut down as soon as th

discuss stages of accounting for costs

PrivateJets (PJ) is considering expanding its operations in the corporate travel market. Currently, PJ has a capital structure with a 25% debt-equity ratio. Their levered equity

You sell a machine for $600,000. You allow the client to pay 1/3 at the time of the sale and 1/3 at the end of year one and 1/3 at the end of year two. The company earns 10% on ass

rocess costing Prepare a spreadsheet to solve the following process costing problem. Review the four process costing videos provided in Interact Resources. Note that in the situati

Early in 2014, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2014 and

On January 1, 2012 Morgan's Motors issued $500,000 of 3-year, 8% bonds when the market yield was 6%. The bond agreement stated that compounding was semi-annual with payments due on


Important Points Regarding to the Variance Analysis Variance reporting concentrates on both with favourable and unfavourable variances. Normally unfavourable variances are pun