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I’m not sure that’s always or necessarily true. The variable costs will go down over time if there are process improvements, but eventually there are diminishin
by philwelch 5y ago
I’m not sure that’s always or necessarily true. The variable costs will go down over time if there are process improvements, but eventually there are diminishing returns to those. Meanwhile, the cost of materials and labor could rise.
- tgb 5y agoSure it's not 100% of the time but that's besides the point still. Isn't NIFO a bad fit for the times when per-unit costs are decreasing? And since this happens fairly regularly it seems like a bad choice period, or at least not obviously better than FIFO or LIFO.