Therefore, when COGS is lower (as it is under FIFO), a company will report a higher gross income statement. Under LIFO, remaining inventory may not be a reflection of market value. This is because older inventory was often purchased at a lower Backtesting price and the market may have changed…
What is the FIFO Method? Meaning, Benefits, & How it Works
The pros and cons listed below assume the company is operating in an inflationary period of rising prices. The last-in, first-out (LIFO) method assumes that the last unit making its way into inventory–the newest inventory–is sold first. Therefore, the older inventory is left over at the end of the accounting…
What Is the Dow Jones Industrial Average DJIA All-Time High?
Billionaire investors conduct careful research into every stock they buy, which is why it’s worth checking out what they are buying (or selling). Fortunately, investment firms that manage more than $100 million are required to disclose their holdings with the Securities and Exchange Commission (SEC). Because of that, you won’t…