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By: Alexey De La Loma
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29/08/2024

Which accounting method is less likely to suffer from an inventory write-down?

An inventory write-down or an inventory impairment is defined as an accounting term that recognizes when your inventory’s market value falls below the book value, but it still considered sellable. Under an scenario of inventory increasing costs, which of the following inventory accounting methods is less likely to suffer an inventory write-down? a) FIFO. b)

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Which accounting method is less likely to suffer from an inventory write-down?

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