Arruza Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach. Because the financial personnel at Arruza know very little about dollar-value LIFO, they ask you to answer the following questions. a.    What is a LIFO pool? b.    Is it possible to use a LIFO pool concept and not use dollar-value LIFO? Explain. c.    What is a LIFO liquidation? d.    How are price indexes used in the dollar-value LIFO method? e.    What are the advantages of dollar-value LIFO over specific-goods LIFO?

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.