Accounting Assignment Example | Topics and Well Written Essays - 1250 words - 1

Accounting - Assignment Example In our current case however, the FIFO method will result in higher profits due to the fact that the older inventory was at held at a lower cost. The new inventory costs more, due to which the Cost of Goods Sold goes up in the LIFO method. However, when we talk to about meaningful profits, then I would say that the LIFO method is more relevant. This is because FIFO results in "inventory profits"; profits that arise merely from holding inventory; and fails to provide the best matching of costs and revenues. Thus in terms of more meaningful profit, I would say that LIFO is more meaningful as it depicts a better matching better revenues and costs. FIFO is the costing method which depicts a better approximation of actual physical flow of goods. This is because companies generally use the oldest items in inventory first so they can continually roll the stock and prevent deterioration or obsolescence. Furthermore, it’s a matter of common sense that inventory bought in the last quarter cannot be used in the first three quarters, thus the physical flow of goods initiates from the inventory in hand at the beginning. There will be more cash available for the management under the FIFO method and not the LIFO method. The exact amount which would be available to the management based on the income statements generated would be $5,100. This is due to the fact that in FIFO, the cost of goods is lesser, resulting in greater profits. In the LIFO method, the cost of inventory is much higher, and thus our profits shrink. The assumption that is being made here is that the net profit after taxation is the cash which is available for the management. As the income statements in Part A prove, FIFO would provide more cash rather than LIFO. The gross profit will be lower in the average cost method when compared to the FIFO method because average cost method accounts for the expensive inventory as well as the cheaper inventory. Likewise,

Why should we make Alcohol illegal Essay Example | Topics and Well Written Essays - 1500 words

Why should we make Alcohol illegal - Essay Example Alcohol blocks different messages of the brain and proper messages reception is not possible in this scenario. The perceptions, movement, control, hearing and the excessive use of alcohol affects the vision of a person. People usually become addictive to alcohol because when they take it into small amounts then at times they feel more relaxed and less anxious. However, if you consume alcohol in excessive amounts then it might result in intoxication. There are different people who slur when they speak, they losses their coordination and this is all because of alcohol. All these alcohol consumers are confused and disoriented in their lives. The effects of intoxication in certain conditions are slow and people become very angry and aggressive at times. The alcohol is associated as one of the deadliest drugs of the planet because of the fact that it links the phenomenon of slow poisoning. The negative effects of alcohol can be identified by the fact that if alcohol is consumed in greater quantities than a person might die because of alcohol poisoning. People might also engage in violent vomiting and because of it, death might occur. Despite all these problems that are associated with the consumption of alcohol, there are different people and even teenagers who consume alcohol in the form of beers, whiskeys, rum, etc. Organizations that own alcohol oriented products market these products extensively uses adventurous themes to market the products. Ultimately, when people consume these products they affected by that.