Sorry if this has been asked already but I need a quick confirmation. What would you say if Scott says “Earnings are low quality because the company uses the LIFO method for inventory accounting” ? For me Inventory should be FIFO and COGS should be LIFO, so the aforementioned statement should be CORRECT. Thanks -N
I would say Scott needs to start looking for a new job 
JK. you are correct, FIFO for inventory, and LIFO for COGS
But this dumb Scott is correct, isn’t he? Schweser states that “LIFO method is a conservative accounting policy and Scott’s statement is incorrect”. So who’s the dumbest: Scott, Schweser, or Nicolargol?
Schweser is just confusing. Yes, partially Scott is correct. I guess the company can’t break their statments btw FIFO for Inv & LIFO for COGS. But the analysis could and should.
Ok thanks for the confirmation.