Why is that during periods of price changes, two businesses (performing equally well in most respects) can report differing profit levels (1 Viewer)

[moon_princess]

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[RossoneriAU]

Due to the presence of different methods of Accounting that address the impact of the price change in different ways. E.g. FIFO, LIFO, Moving Average, Specific Identification etc.

 

[studiesofboard]

They may have extra expenses which contributes to their overall profit.