What advantage does the dollar-value method have over the specific goods approach of LIFO inventory valuation?

What advantage does the dollar-value method have over the specific goods approach of LIFO inventory valuation?



The principal advantage is that it requires less record-keeping. It is not necessary to keep records or make calculations of opening and closing quantities of individual items. Also, the use of a base inventory amount gives greater flexibility in the makeup of the base and eliminates many detailed calculations.


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