This brief but provocative case is an useful vehicle for identifying the financial statement effects of merely several of the accounting method options available under the U.S. generally established accounting principles (GAAP). Intended for MBA students, the case assume a basic comprehension of the inventory cost flow methods of weighted average, FIFO, LIFO, and specific identification. Similarly, pupils must also have a working knowledge of the fundamental depreciation calculations for line that is straight, double-declining balance, and components-of-production.
A young entrepreneur undertakes a straightforward modeling job to explore the differential effects of four different inventory methods in combination with three different depreciation methods. Will there be much difference across the alternatives?
Sack It & Pack It, Inc. 12 Combinations of GAAP and How They Differ case study solution
PUBLICATION DATE: September 16, 2009 PRODUCT #: UV1774-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING