Effects of the different costing methods on inventory

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Analyze the effects of the different costing methods on inventory, net income, income taxes, and cash flow.

The ability to measure net income accurately for a period should be the driving force behind selecting an inventory costing method.
Inventory costing methods impact the cost of goods sold and, therefore, net income.
When a company uses LIFO for tax purposes, it must use it for financial reporting purposes as well.

Reference no: EM13953423

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