If there is inflation how does this affect LIFO reserves? Does it increase or decrease it?
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If there is inflation how does this affect LIFO reserves? Does it increase or decrease it?
LIFO Last-in-first out is a method used to issue material. It is a method of pricing the issues of materials on the basis of assumption that the items of the last batch (lot) purchased are the first to be issued. Therefore, under this method the prices of the last batch (lot) are used for pricing the issues, until it is exhausted, and so on.
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- Why is it true, in general, that a failure to adjust expected cash flows for expected inflation biases the calculated NPV downward?How does a high rate of inflation affect money in all its different roles?What happens to market-clearing, or equilibrium, interest rates in a capital marketwhen the supply of funds declines? What happens when expected inflationincreases or decreases?
- What effect does relative inflation have on interestrates and exchange rates?What effect does inflation typically have on the EOQ?Federal Reserve impact on inflation, growth and exchange rates: What happens to inflation, growth and exchange rates when the Federal Reserve decrease the required reserve ratio?
- How do you justify using a “constant dollar” cash flow analysis when inflation over the period covered in your “constant dollar” cash flow analysis is as good as guaranteedHow do investors deal with inflation when they determine interest rates in the financial markets?How does inflation affect interest rates, security prices, and financial planning?
