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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1381 |
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decided to switch into FIFO in accounting for inventories just as most of its competitors are. How did that decision affect Blount Inc.?
First, the company believes that by using FIFO instead of LIFO, it would be better able to match its costs and revenues. This is achieved because the company is using Japanese manufacturing techniques and JIT (just-in-time) methods which both lead to lower production costs, as well as, reduced inventory...
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This is achieved because the company is using Japanese manufacturing techniques and JIT (just-in-time) methods which both lead to lower production costs, as well as, reduced inventory.
Second, the change led Blount to an increase of $3.7 million ($0.31 per share) in net income by the end of the February 1988 where the current economic environment was facing low inflation...
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