> > York Inc. manufactures notebook computers and has experienced noticeable declines in the purchase price of many of the components it uses, including, computer chips.

York Inc. manufactures notebook computers and has experienced noticeable declines in the purchase price of many of the components it uses, including, computer chips.

Which inventory costing method should York use if it wants to maxim...

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York Inc. manufactures notebook computers and has experienced noticeable declines in the purchase price of many of the components it uses, including, computer chips.

Which inventory costing method should York use if it wants to maximize net income?
Explain your answer.

Answer

Component cost used to be high, and now it's low.
York wants to maximize net income, so it wants to keep the cost of goods sold *low*.
So, York will want to use recent (low) costs for the components it uses.
Those are the components that come into their inventory last.
Therefore, you would want to use the LIFO the later, cheaper components will allow them to maximize net income.

Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017

This 41 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 75 views.

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