Explain the issue of inventory liquidation


Response to the following questions:

1. Discuss the cost flow assumptions of the LIFO inventory method. Under what conditions would a company's ending inventory differ under a perpetual and a periodic LIFO system?

2. Explain the issue of inventory liquidation when a company uses the LIFO cost flow assumption. Why is this an issue exclusive to LIFO?

Support your answer using a minimum of two professional or academic sources.

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Cost Accounting: Explain the issue of inventory liquidation
Reference No:- TGS02101302

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