What would be the effect on COGS if the local currency is depreciating/appreciating under temporal/current method and FIFO/LIFO?
If using FIFO for a local currency that is depreciating, COGS should be lower than LIFO?
If using FIFO for a currency that is appreciating, COGS should be higher than LIFO?
If using Current method for a currency that is appreciating, COGS should be higher than with the temporal method?
If using Current method for a currency that is depreciating, COGS should be lower than with the temporal method?
Problems 2 and 21 (Reading 18) go over this, but the explanations on the curriculum are not very well elaborated…