last-in, first-out inventory pricing

简明释义

后入先出库存计价

英英释义

例句

1.Many retailers prefer last-in, first-out inventory pricing for their seasonal stock.

许多零售商更喜欢对季节性库存采用后进先出库存定价。

2.Under last-in, first-out inventory pricing, the most recently purchased items are sold first.

在后进先出库存定价下，最近购买的商品会优先出售。

3.The accountant explained that last-in, first-out inventory pricing affects the cost of goods sold calculation.

会计解释说，后进先出库存定价影响商品销售成本的计算。

4.The company adopted last-in, first-out inventory pricing to manage its perishable goods more effectively.

公司采用后进先出库存定价来更有效地管理其易腐商品。

5.Using last-in, first-out inventory pricing can help businesses minimize losses during times of inflation.

使用后进先出库存定价可以帮助企业在通货膨胀期间减少损失。

作文

In the realm of accounting and inventory management, understanding various inventory valuation methods is crucial for businesses aiming to optimize their financial performance. One such method is known as last-in, first-out inventory pricing, which is often abbreviated as LIFO. This approach fundamentally changes how a company calculates its cost of goods sold (COGS) and ultimately affects its profit margins and tax liabilities. To grasp the significance of last-in, first-out inventory pricing, it is essential to explore its mechanics, advantages, and potential drawbacks.The last-in, first-out inventory pricing method operates on the principle that the most recently acquired inventory items are the first to be sold. For instance, if a company buys 100 units of a product at $10 each and later purchases another 100 units at $12 each, under LIFO, the cost of goods sold when selling the first 100 units would be calculated based on the latter purchase price of $12. This method can lead to higher COGS during periods of rising prices, which in turn reduces taxable income and can provide tax benefits to the business.One of the primary advantages of last-in, first-out inventory pricing is its ability to match current costs with current revenues. In an inflationary environment, where prices tend to rise, using LIFO can result in lower profits on paper because the higher costs of the most recent inventory are matched against revenues. This can be particularly advantageous for companies looking to minimize their tax burden. Additionally, LIFO can improve cash flow by deferring tax payments, allowing businesses to reinvest their capital more efficiently.However, despite its benefits, last-in, first-out inventory pricing does come with its set of challenges. One major concern is that it can distort the true value of inventory on the balance sheet. Since older, cheaper inventory remains on the books while newer, more expensive inventory is accounted for in COGS, businesses may not have an accurate representation of their inventory’s market value. This discrepancy can mislead stakeholders about the company's financial health.Moreover, LIFO is not permitted under International Financial Reporting Standards (IFRS), which means that companies operating globally may face difficulties if they wish to maintain consistency in their financial reporting. This limitation can lead to complications when consolidating financial statements across different jurisdictions.In conclusion, the last-in, first-out inventory pricing method presents both opportunities and challenges for businesses. While it can offer significant tax advantages and better align costs with revenues in times of inflation, it also poses risks related to inventory valuation and compliance with international accounting standards. Companies must carefully consider their specific circumstances and consult with financial advisors to determine whether LIFO is the right choice for their inventory management strategy. Ultimately, the decision should align with the company’s overall financial goals and operational needs, ensuring that they can navigate the complexities of inventory pricing effectively.

在会计和库存管理领域，理解各种库存估值方法对于希望优化财务表现的企业至关重要。其中一种方法被称为后进先出库存定价，通常缩写为LIFO。这种方法从根本上改变了公司计算销售成本（COGS）的方法，并最终影响其利润率和税务负担。要理解后进先出库存定价的重要性，必须探讨其机制、优点和潜在缺点。后进先出库存定价方法基于这样一个原则：最近获得的库存商品是最先销售的。例如，如果一家公司以每个$10的价格购买100个产品，后来又以每个$12的价格购买另外100个产品，那么根据LIFO，在销售前100个单位时，销售成本将基于后者的采购价格$12进行计算。这种方法在价格上涨期间可能导致较高的销售成本，从而减少应税收入并为企业提供税收优惠。后进先出库存定价的主要优点之一是它能够将当前成本与当前收入相匹配。在通货膨胀环境中，价格往往会上升，使用LIFO可以导致表面上的利润下降，因为最新库存的高成本与收入相匹配。这对于希望最小化税负的公司尤其有利。此外，LIFO还可以通过推迟税款支付来改善现金流，使企业能够更有效地再投资其资本。然而，尽管有其优势，后进先出库存定价也存在一系列挑战。一个主要问题是，它可能扭曲资产负债表上库存的真实价值。由于较旧、较便宜的库存仍然留在账面上，而更新、更贵的库存被计入销售成本，企业可能无法准确反映其库存的市场价值。这种差异可能误导利益相关者对公司财务健康状况的判断。此外，LIFO在国际财务报告准则（IFRS）下是不允许的，这意味着在全球运营的公司在希望保持财务报告一致性时可能面临困难。这一限制可能导致在不同司法管辖区合并财务报表时出现复杂情况。总之，后进先出库存定价方法为企业提供了机会和挑战。虽然它可以提供显著的税收优惠，并在通货膨胀时期更好地将成本与收入对齐，但它也带来了与库存估值和遵守国际会计标准相关的风险。企业必须仔细考虑其具体情况，并咨询财务顾问，以确定LIFO是否适合其库存管理策略。最终，决策应与公司的整体财务目标和运营需求相一致，确保他们能够有效应对库存定价的复杂性。