Question

FIFO and LIFO ??

Answer 1

更新1:

可否详细说明LIFO 的好处和坏处??

,What is the advantage and disadvantage of FIFO and LIFO? The advantage of FIFO Cost Method 1.) It is easy to apply with either periodic perpetual inventory systems.2.) It produces an inventory value for the balance sheet that approximates current costs.3.) The flow of costs tends to be consistent with the usual physical flow of goods.4.) It is systematic and objective.5.) It is not subject to manipulation.The disadvantage of FIFO Cost Method 1.) It does not match the current cost of goods sold with current revenues.2.) The oldest unit costs are matched with current sales revenue. This result often is called an inventory profit.The advantage of LIFO Cost Method 1.) During periods of rising inventory costs, LIFO costed at the end of the period provides a lower pretax ine than current costing.2.) A perpetual LIFO system is used for internal purposes, the results usually are restated to an end-of-period costing basis for external reporting purposes.The disadvantage of LIFO Cost Method 1.) When inventory unit prices are increasing, and unit sales volume is not decreasing, LIFO causes cost of goods sold to be higher and pretax ine to be lower during the period.,参考: 小鱼枪手,FIFO= first in first out. It me pany will sell some of the earlier purchase of inventory but retain some of the later purchase of inventory.

Advantage: due date product will not in the pany.
clearly to know the market price of product on today.

LIFO = Last in first out

Advantage: can sell high price of product first, pany can efficiency to earn more money.

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