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Splitting into two parts so I can get yelled at separately: 1) At least in the US, most large companies converted to FIFO (first-in, first-out) accounting so,
by Xorakios 3y ago
Splitting into two parts so I can get yelled at separately:
1) At least in the US, most large companies converted to FIFO (first-in, first-out) accounting so, if today's input prices are up 10%, but a company raises by 5%, their profits skyrocket for a awhile, and then trend down when inventories and long term/sunk costs like leases, amortization of R&D, and labor contracts catch up.