Answer
First, the pooled approach reduces clerical costs by reducing on record keeping. Second, replacement is permitted if it is a similar material, or interchangeable, or similar in use. Thus, it is harder to erode LIFO layers when using dollar-value LIFO techniques.
Work Step by Step
The dollar-value LIFO method measures the decrease and increases in a pool in terms of total dollar value, not by the physical quantity of the goods in the inventory pool.
