Briefly Explain How Companies That Use LIFO Can Both Increase

question 30

Essay

Briefly explain how companies that use LIFO can both increase and decrease reported earnings by "managing" ending inventories.

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Definitions:

Consumer Goods Pricing Act

Legislation aimed at regulating the pricing of consumer goods to prevent unfair practices and protect consumers, although specific details can vary by jurisdiction.

Sherman Act

A foundational antitrust law passed in 1890 in the United States, aimed at prohibiting monopolies and promoting competition.

Federal Trade Commission Act

A United States federal law established in 1914 to prevent unfair competition, deceptive acts, and regulate antitrust practices.

Robinson-Patman Act

A United States federal law that prohibits anti-competitive practices by producers, specifically price discrimination.