GEB 3422 RC Explaining FIFO and LIFO Inventory Accounting Systems Discussion

User Generated

thynzn2409

Business Finance

GEB 3422

Rasmussen University

GEB

Description

Write an Executive Summary Explaining FIFO and LIFO

Competency

Analyze decisions that impact the healthcare delivery system.

Instructions

The Gotham City Hospital, a mid-sized hospital, has hired you as an expert consultant for healthcare organizations. They have requested an executive summary, between 3-4 pages that explains to their management team (administrators and medical staff) the difference between FIFO and LIFO delivery systems. The summary needs to cover both the risks and benefits the two delivery systems could have in the procurement and use of medical resources at the hospital.

Write an executive summary of at least 3 pages comparing and contrasting the use of FIFO and LIFO supply chains in a healthcare setting.

Make sure that the Executive Summary includes the following;

  • Address the benefits and risks of using a FIFO delivery system in a healthcare setting.
  • Address the benefits and risks of using a LIFO delivery system in a healthcare setting.
  • Make a recommendation based on your research and back it up with evidence.

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Explanation & Answer

Attached. Please let me know if you have any questions or need revisions.

BUSINESS PROJECT MANAGEMENT

Executive Summary Explaining FIFO and LIFO
Name
Institution of Affiliation

1

BUSINESS PROJECT MANAGEMENT

2

Executive Summary
FIFO and LIFO systems are inventory accounting systems used in management.
First-in-First Out (FIFO) is used in managing inventory and financial health of an
organization. FIFO system records the most recent purchased inventory in the balance
sheet since it records the oldest inventory items sold first. FIFO operates on the
principle that the first items added to an inventory are the first to be sold, thus the oldest
inventory item will be removed first in case of a sale.
In contrast, Last in First Out (LIFO) is the opposite of FIFO in that the last
bought inventory is the first to be sold. The main difference between the two accounting
methods is in the FIFO cost of goods entails items that were sold first, while in LIFO,
the cost of goods entails the last sold item (Weil, Schipper & Francis, 2014).
Furthermore, LIFO's ending inventory reflects the earliest purchases, while FIFO's
ending inventory comprises the most recent acquisitions. However, every system has
benefits and risks which inform implementation.
Benefits of FI...


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