Question
1. When would each of the three, (a) FIFO, (b) LIFO, & (c) Weighted Average, be appropriate to use & why? 2. (a) If the
1. When would each of the three, (a) FIFO, (b) LIFO, & (c) Weighted Average, be appropriate to use & why?
2. (a) If the cost of goods sold goes up, does gross profit always go down? (b) By having different inventory methods that result in different costs of goods sold and gross profit, arent you encouraging playing with the numbers? Explain.
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
22nd Edition
324401841, 978-0-324-6250, 0-324-62509-X, 978-0324401844
