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inventory accounting

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Noun1.inventory accounting - accounting that controls and evaluates inventory
accountancy, accounting - the occupation of maintaining and auditing records and preparing financial reports for a business
FIFO, first in first out - inventory accounting in which the oldest items (those first acquired) are assumed to be the first sold
last in first out, LIFO - inventory accounting in which the most recently acquired items are assumed to be the first sold


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On behalf of Tax Executives Institute (TEI), I am writing to urge that the Last-In, First-Out (LIFO) inventory accounting method be retained as part of the Internal Revenue Code.
93 TC 500 (1989), which held that a taxpayer could not change its consistently used inventory accounting method without the IRS's consent, even though the method used was "flawed.
Again, SOP 98-5 is not intended to override an entity's inventory accounting policy.
 
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