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    woosta323 Posts: 1, Reputation: 1
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    #1

    Nov 10, 2010, 08:39 PM
    Why would a company change from Fifo to lifo?And What are the implications
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    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Nov 10, 2010, 09:57 PM

    A company generally uses LIFO because the cost of their inventory sold would be higher than under FIFO, thereby decreasing their taxable income and saving on taxes. Companies elect to use LIFO when costs are expected to be increasing. In times of inflation, the tax savings can be significant.
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