Understanding LIFO Accounting for the Food and Beverage Industry
EisnerAmper Podcast
00:00
The Importance of Choosing a LiFO Option
Under dollar value LIFO, most of the undesirable characteristics are avoided because no changes in the way your accounting system tracks costs are made. Material reserve recapture does not occur from normal inventory liquidations or small amounts of deflation. And there are examples where you can actually grow your LIFO reserve even when balance is inventory has decreased year over year.
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