This small but provocative case is a useful tool for the differentiation of the financial implications of the application are some of the accounting treatment of options available in accordance with U.S. generally accepted accounting principles (GAAP). Designed for MBA students, the case involves a basic understanding of inventory cost flow methods LIFO, FIFO, weighted average, and specific personality. In addition, students must also have a working knowledge of the basic calculation of depreciation for a straight line, double declining balance and units of production. Young entrepreneur takes the simple task of modeling for the study of the differential effects of four different methods of inventory in conjunction with the three different methods of depreciation. Will there be a big difference between the options? He was intrigued by the fact that he has a choice of accounting methods at his disposal, as he prepares for the preparation of a set of financial statements for the first year. "Hide
by Mark E. Haskins Source: Darden School of Business 5 pages. Publication Date: September 16, 2009. Prod. #: UV1774-PDF-ENG
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