The Excess of an Inventory's Value Stated on a FIFO

question 10

Short Answer

The excess of an inventory's value stated on a FIFO basis over its value stated on a LIFO basis is called a(n) ____________________.

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Definitions:

Depletion

The allocation of the cost of natural resources over their useful life or extraction period.

Double-Declining-Balance Method

A method of accelerated depreciation where an asset's book value is reduced at double the rate of its straight-line depreciation.

MACRS

Stands for Modified Accelerated Cost Recovery System, which is a method of depreciation used for tax purposes in the United States that allows for faster depreciation of assets.

Capital Expenditure

Capital utilized by a firm for the procurement or refurbishment of solid assets including real estate, production plants, or hardware.