Lessons
- Inventory - Introduction
- Costs Included in Inventory
- Inventory Valuation Methods
- Inventory Accounting Analysis and Inflation/Deflation
- Perpetual Vs. Periodic Inventory Systems
- Impact of Inventory Valuation Methods
- Inventory at Net Realizable Value
- Disclosures Relating to Inventories
- Impacts of LIFO and FIFO Inventory Methods on Selected Financial Ratios
Impact of Inventory Valuation Methods
We discussed the impact of LIFO and FIFO valuation methods on COGS, ending inventory, and gross profits under the increasing prices scenario under inflationary and deflationary scenarios. The following table summarizes the impact of LIFO and FIFO under the inflationary scenario (rising prices).
| FIFO | LIFO | |
| COGS | Lower | Higher |
| Ending Inventory | Higher | Lower |
| Gross Profits | Higher | Lower |
Related Downloads
Related Quizzes
Finance Train Premium
Accelerate your finance career with cutting-edge data skills.
Join Finance Train Premium for unlimited access to a growing library of ebooks, projects and code examples covering financial modeling, data analysis, data science, machine learning, algorithmic trading strategies, and more applied to real-world finance scenarios.
I WANT TO JOINJOIN 30,000 DATA PROFESSIONALS
Free Guides - Getting Started with R and Python
Enter your name and email address below and we will email you the guides for R programming and Python.