LIFO (1 Viewer)

[Aysce]

Okay so I have two meanings to LIFO:

In Business In action 4th edition, it says LIFO is a way to value the inventory, but in my other textbook it says LIFO is a method used to sell goods (ie Pushing back old items to make room for new items and having them sold first). Should I just include both of them in my notes or is there only one to choose?

 

[krnofdrg]

They basically mean the same thing, I think you're confused by the way the authors worded them. I'd say include both. and confirm with your teacher. Meanings in textbooks seem to overlap alot, well especially during my HSC it occured since i was using 4-5 textbooks and workbooks.

 

[Aysce]

Yeah its just im not sure whether its the way they arrange stock OR if its a price evaluation thing :S Just check with fellow BOSers atm. By the way (off topic), for your ancient history mark did you state-rank overall?

 

[exiled]

It's both. The inventory method designates what will be sold and when, which in turn allows the inventory to be accurately valued.

 

[determine]

LIFO is actually illegal in Australia according to accounting standards. This is because it is believed that the inventory remaining in ending inventory at the end of the accounting period does not reflect the current cost of inventory, so it is not an accurate valuation. The most commonly used inventory valuation method here in Australia is FIFO (first-in-first-out).