2007-07-29 18:46:37 · 3 answers · asked by babyface 1 in Business & Finance ➔ Small Business
I assume you mean for taxes when you say can you change your inventory method. You can but you have to get it approved in advance prior to filing. The 3 most common methods are FIFO, LIFO and weighed average. Having no knowledge of your industry or type of inventory it's hard to answer the question, however I have always preferred the weighed average method as it tends to soften changes in inventory. LIFO is probably really bad if you have an industry in which prices are declining, you end up with inventory that is overvalue. If prices are increasing, then you have the opposite problem. FIFO is just a reverse play on LIFO.
2007-07-29 18:57:03 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I don't think you can but it would be too hard anyhow. If you are doing FIFO then switch to FILO it wouldn't be too bad but going to FILO to FIFO would be too hard and of course you never want FISH.
2007-07-30 01:52:22 · answer #2 · answered by shipwreck 7 · 0⤊ 0⤋
Yes you can... same thing as you can change your college course so you don't have to resort to other people when you have your homeworks.
2007-07-30 19:35:31 · answer #3 · answered by Pinoyako! 2 · 0⤊ 0⤋