FROM: ACCOUNTING TEAM MATE
SUBJECT: LIFO-FIFO EXPLANATION
DATE: SEPTEMBER 20, 2010
EXECUTIVE VICE PRESIDENT
The overview of Last In/First Out and First In/Last Out is now completed for the date and time of your choice to discuss the company matters. The information from last month is was completed at the end of the month and the present is kept current on a daily base as management needs to be up to date of the inventory and financial levels of the company.
Reducing federal and state income corporate taxes are important as this may allow the company to see a decrease in expenses over the time. Looking at the expenses of the company and viewing the incomes of the employees will allow the company to make the decision as to Last In/First Out or First In/Last Out to save the company finances. Although looking at the inventory will allow the management to view the Last In/First Out and First In/Last Out as to the timing of the inventory growth.
Using First In/Last Out will allow the company to still grow as the inventory increases and the company will still profit. Using Last In/First Out will allow the company to be at a stand point and no increases are made. Understanding the decision that is made must be final, this information will be viewed and continued to be up to date for any financial issues that may arise before and after the meeting and decisions are made.
By looking at the short and long term on Cost of Goods Sold this will allow you to make the judgment of the Last In/First Out and First In/Last Out and it shows the profit for the company in the past and allow you to predict the future. Good luck with your decision and I stand by you on the choice that is made. Thank you