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On Optimal Choice of Inventory Accounting Method.

Sasson Bar-Yosef; Pradyot K. Sen

The Accounting Review 1992

Argues that investors choose an inventory accounting method to optimize the trade-off between incentive effect and tax gain. Role of manager in choosing the accounting policy; Description of setting; Analysis of cost trade-off between incentive effect and tax gain; First in, first out (FIFO) versus last in, first out (LIFO).

DOI
10.2308/tar-9605305888
Volume
67 (2)
Pages
320-336
Language
en
Export
BibTeX
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