The primary objective of measuring it is to determine how much money was made. Inventory for a manufacturing company consists of all the goods they need to make the products instead of only finished goods. Yes, it is still inventory and has not yet been used. If prices are rising, FIFO will show higher Net Income and LIFO will reduce taxes to be paid. No, they must choose one and use it so they can't gain unfair advantage if prices rise or fall.
Answer is in the packet.
No effect in 19X5. 13. Liabilities are current if they are expected to be satisfied within one year or within the normal operating cycle, whichever is longer. It is within the next year and is to be paid from current assets. When the firm places a warranty or guarantee on its product at the time of sale. A contingent liability is a potential liability arising out of a past transaction whereas estimated liabilities exist but the amount is unknown.