标题: Why Is cash-flow higher under LIFO? [打印本页] 作者: scruge 时间: 2011-7-13 13:48 标题: Why Is cash-flow higher under LIFO?
Hi guys, why is cash-flow higher under LIFO than FIFO? I'm sure there is an obvious explanation but it is escaping me. Thanks! 作者: dece2011 时间: 2011-7-13 13:48
it is not a rule
thats if you have rising inv costs
under lifo that will cause you to have more expenses
If prices are rising over the period AND inventory quantitites are stable or increasing, LIFO COGS will be greater than FIFO COGS. Therefore, LIFO pretax income would be lower, resulting in lower tax related cash outflows.作者: smartpants 时间: 2011-7-13 13:48
Thanks Ahmad! So cash flows aren't actually based on the actual prices paid by customers?? I'm confused. cheers
