ChatterBank1 min ago
accounting
2 Answers
advantages and disadvantages of fifo,lifo,
avco
Answers
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well obvious advantages... LIFO, you wont be wasting valuabe skills and experience that older staff would have gained. You also would not be wasting valuable time and resources in training you're staff to the company's desired level. FIFO, you may be getting rid of those who have become lazy within their job roles and who pretty much are there for the ride. Also you may be getting rid of the staff who are archaic within the company as a whole i.e. not moving with the times, information technology!.. knowing how fast business' can move on and change in todays climate compared with it's more 'stuck-in-their-ways' staff!
Aren't we talking stock valuation here?
There are whole tomes about the advantages and disadvantages of the various methods of valuing stock and teh conventions which apply in particular industries.
In the UK lifo is not acceptable to the Inland Revenue
http://www.inlandrevenue.gov.uk/manuals/bimmanual/BIM33100.h tm
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