is it the same thing as using LIFO method? curriculum book 3 P342 6c
Maybe have a look at what investopedia.com says, i find the explanation quite good and to the point.
Per Schweser: “In a LIFO liquidation, the firm sells more inventory than it purchases or produces. Accordingly, the lower cost inventory layers are penetrated which results in higher earnings. The analyst should subtract the effects of the liquidation to arrive at a better net income figure”
That’s like Macys having a liquidation sale.