Publications
Publications
- June 2004 (Revised March 2005)
- HBS Case Collection
Question of LIFO or FIFO, The; Which Is Preferable?
By: William J. Bruns Jr. and Sharon M. Bruns
Abstract
Discusses the advantages and disadvantages of alternative inventory flow assumptions allowed in the United States. A single exhibit shows that in Year 2, a company using LIFO in Year 1 could report higher net income by switching to FIFO at a cost of higher income taxes. Retaining LIFO would save taxes but lead to lower reported income. A rewritten version of an earlier note.
Keywords
Citation
Bruns, William J., Jr., and Sharon M. Bruns. "Question of LIFO or FIFO, The; Which Is Preferable?" Harvard Business School Background Note 104-087, June 2004. (Revised March 2005.)