Discuss the major factors that, over time, will affect the magnitude of the difference between the current cost of the company’s inventory and the reported LIFO amount.

Management of the Singer Company is currently considering the possibility of changing from the FIFO method to the LIFO method of inventory valuation for income tax and financial reporting purposes. The company’s president, Diane Singer, is concerned that using LIFO will tend to distort the company’s balance sheet over time. She believes that the difference between the current cost of […]