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Manufacturing companies can choose from several methods of valuing its inventory such as normal cost, weighted average and FIFO. This is true for financial reporting.

Manufacturing companies can choose from several methods of valuing its inventory such as normal cost, weighted average and FIFO. This is true for financial reporting. However, for taxes purposes, they may also elect the LIFO method. Why/when do you think choosing LIFO would be an advantage on their tax return?

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