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March 18, 2026The Accounting Review0 citations

The Year-End LIFO Inventory Purchasing Decision: An Empirical Test.

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MFMicah FrankelRTRobert Trezevant

Key Points

  • The aim is to analyze year-end purchasing decisions in LIFO firms compared to FIFO firms, particularly focusing on the influence of taxes.
  • Analyzed decision-making models for LIFO firms.
  • Compared inventory purchasing behavior with FIFO firms.
  • Examined the impact of tax considerations on inventory policies.
  • LIFO firms are more inclined to purchase additional inventory at year-end than FIFO firms.
  • Tax implications significantly affect the inventory purchasing decisions of LIFO firms.
  • Management of cost of goods sold is directly influenced by tax strategies.

Abstract

Abstract Examines analytical models of year-end purchasing decisions of a last in, first out (LIFO) firm. Prediction that LIFO firms are more likely to purchase extra inventory at year-end than first in, first out (FIFO) firms; Effect of taxes on the inventory purchasing policy of LIFO firms; Cost of goods sold management.

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Cite This Study

Frankel et al. (1994) studied this question.

synapsesocial.com/papers/69ba43e94e9516ffd37a59bahttps://doi.org/10.2308/tar-9412141421
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