Inventory Accounting and Profit Evaluation.
In an inventory model with exogenous sales, first in-first out (FIFO) and last in-first out (LIFO) criteria are formalized and compared with national account estimates for intermediate and finished.good products. The model is simulated by utilizing manufacturing input and output prices for Italy (1970-88). LIFO and national account estimates of inventory are usually close and also imply reliable measures of output level and changes which can be shown by solving the quantity model. Conversely, FIFO exhibits larger profits and leads in real terms to unsatisfactory estimates of output changes. Copyright 1991 by The International Association for Research in Income and Wealth.
Year of publication: |
1991
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Authors: | Fiorito, Riccardo |
Published in: |
Review of Income and Wealth. - International Association for Research in Income and Wealth - IARIW. - Vol. 37.1991, 4, p. 433-45
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Publisher: |
International Association for Research in Income and Wealth - IARIW |
Saved in:
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