Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 8 - Valuation of Inventories: A Cost-Basis Approach - Concepts for Analysis - Page 486: CA8-9a

Answer

A Last In First Out (LIFO) pool is a group of similar items which are combined and collectively accounted for under the LIFO inventory approach.

Work Step by Step

However, the determination of the degree of similarity between items for the purpose of grouping them into pools may be difficult and may be based upon arbitrary management decisions.
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