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In Business Accounting and Bookkeeping
With inflation what are the implications of

using lifo and fifo inventory?

Answer . LIFO inventory valuation assumes the latest purchased inventory becomes part of
the cost of goods sold, while the FIFO method assigns inventory items that were purchased
first to the cost of goods sold. In an inflationary environment, the LIFO method will result in
a higher cost of goods sold figure and one that more accurately matches the sales dollars
recorded at current dollars.

Which Inventory Valuation Method Should These Companies Use?

And Why?

HEB

Walmart

Home Depot

ACE Hardware
McDonald’s

Staples

88 Lumber

Walgreens

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