accounting unit 2

description

goals of inventory managers

quantity, quality, and cost

FIFO

first in first out (ending inventory is newer)

LIFO

last in first out (ending inventory is older)

weighted average

total cost over units

what is accepted under GAAP (regardless perpetual or periodic)

FIFO, LIFO, and weighted average

which number gets forced out for perpetual

ending inventory

which number gets forced out for periodic

cogs

gross profit

sales-cogs

income before income taxes

gross profit-operating exp

more ending inventory and more costs

FIFO bc newer costs

less cogs and more costs

FIFO bc older costs

more net income and more costs

FIFO bc less cogs

more taxes and more costs

FIFO bc more income

less ending inventory and more costs

LIFO bc older costs

more cogs and more costs

LIFO bc newer costs

less net income and more costs

LIFO bc more cogs

less taxes and more costs

LIFO bc less income

less ending inventory and less costs

FIFO bc newer costs

more cogs and less costs

FIFO bc older costs

less net income and less costs

FIFO bc more cogs

less taxes and less costs

FIFO bc less income

more ending inventory and less costs

LIFO bc older costs

less cogs and less costs

LIFO bc newer costs

more net income and less costs

LIFO bc less cogs

more taxes and less costs

LIFO bc more income