Last in first out or lifo, Cost Accounting

Assignment Help:

Last in first out or LIFO

LIFO is based upon the assumption such the stock purchased last is issued first. Stock valuation should here be based upon the prices ruling on acquisition of last stocks.

Advantages

1. Product costs tend to be based upon recent market prices and are thus realistic.

2. A charge to production is like closely concern to current price levels like possible

Disadvantages

1. Stocks are valued at the oldest prices.

2. This includes tedious calculations whether the price of materials fluctuates from time to time.

3. Comparison of one job along with another may be difficult and unfair.


Related Discussions:- Last in first out or lifo

Master budget, What are the four elements of the budgeting cycle?

What are the four elements of the budgeting cycle?

Feedback forward control system and feedback controls, A transport company ...

A transport company is preparing its cost budgets for the coming year. It has been set both social objectives & cost targets by the government which it must achieve in order to rec

Service cost centres, Service Cost Centres Since no production cost un...

Service Cost Centres Since no production cost units pass via the service cost centers, it is essential to apportion the service department costs; to the production cost center

Cost classification, Identify and explain many classification of costs for ...

Identify and explain many classification of costs for planning, control, performance evaluation and decision making.

four decisions for which abc information is useful, What are the key reaso...

What are the key reasons for product cost differences among traditional costing system and ABC systems? Explain four decisions for which ABC information is useful?

Prepare a partial income statement, Timbatown Pty Ltd is a manufacturer of ...

Timbatown Pty Ltd is a manufacturer of timber tables and chairs. The company mostly sells on a retail basis to household consumers, but occasionally receives large orders for table

Flexible budgets, Flexible budgets provide different information than stati...

Flexible budgets provide different information than static budgets. Discuss some of these differences. Is a flexible budget always better? Are there times when you’d recom

Difference between balance sheet and income statement, (i) Describe the di...

(i) Describe the difference between the balance sheet and the income statement in financial statements of companies. (ii) Give two examples of intangible assets and two exampl

What are the advantages and disadvantages of free float, Q. What are the ad...

Q. What are the advantages and disadvantages of free float? Advantages: It is one of the most suitable ER regimes for transitional countries that experience external shocks l

debt service fund and special revenue fund, For your assignment, discuss w...

For your assignment, discuss when the government and nonprofit organizations would use each of the following funds: Capital projects fund Debt service fund Special r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd