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Why do we have so many methods for accounting for inventory? How does this impact comparability...

Why do we have so many methods for accounting for inventory? How does this impact comparability of financial statements of different companies? In your opinion, should companies be allowed to use accounting methods that are inconsistent with the physical flows of inventory? Explain. Participate in follow-up discussion by supporting or challenging your classmates' assertions.

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Different companies use different methods of inventory such as if a company wants to match it's Cost of goods sold to sales revenue then it will follow LIFO method. Consistency of methods in preparation of financial statements will be able to compare financial statements. If different methods are followed not able to compare financial statements. No, the company would not allow to use accounting method that is inconsistent with the physical flow of inventory

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