daytrading may 21 afternoon, page-4

  1. 5,528 Posts.
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    Prodigy1

    Most businesses define inventory costing on a FIFO or LIFO basis.

    FIFO=first in First Out,
    LIFO = Last in First out.

    Your choice.

    If you change from LIFO to FIFO your reported profit changes and the Tax man comes knocking.

    For a small trader less important, but if you want to analyse profits, so long as you stay consistent it shouldn't matter too much.
 
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