Stock and Work in Progress: The Blood Sucking Vampire
The switch to FIFO enabled Chrysler to charge lower costs against revenues. By virtue of the change, the company was able to declare a profit of $7.6 million in the fourth quarter of 1970; without the change it would have had to declare a loss of $3.6 million (New York Times, 10 February 1971).
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Notes and References
- 1.SSAP 9 and its corporate implications: Keron Bhattacharya, “SSAP 9 and its corporate implications”, Accountancy (October 1976).Google Scholar
- 2.Synopsis of article on SSAP 9: J. Lewis Brown, Management Accounting (February 1980).Google Scholar
- 6.Inventory profit: Peter Drucker, Managing in Turbulent Times (London: Pan Books, 1981) p. 15.Google Scholar
- 18.Just in Time: Charles Batchelor, “You only make what you can sell”, Financial Times (14 November 1989).Google Scholar