Accountant Memo

In: Business and Management

Submitted By mjholmes2012
Words 467
Pages 2
Accounting Memp
Interforoffice Memo

TO: ACCOUNTING TEAM MATE
FROM: ANDREW ACCOUNTANT
SUBJECT: LIFO FIFO EXPLANATION
DATE: 2/24/2015

Occasionally an individual who works at a company in a certain department is required to pass on information to another department or a supervisor. It is necessary to make this memo accurate and professional since information on inventory valuations has been requested by the executive vice president. To be considered that they are not aware of the jargon used by accountants the information used must be explained to company officers. Below is a summary of the changes in the interoffice memo that relates to the accounting jargon and abbreviations. It will also include the requested information on Last In First Out (LIFO) and First In First Out (FIFO) method. The memo is changed from casual to professional and formal after it is revised. The memo concerns the FIFO and LIFO methods and the effects of the methods with-in the company. This requires an explanation of each valuation method in terms of the profit and loss on the income statement and Cost of Goods Sold (COGS). This needs to be elaborated without being condescending. It does not affect the retail industry’s inventory valuation methods, so it is not necessary to include the lawsuit by Macy’s in the last paragraph.
The inflationary economic time and the accounting jargon of elastic pricing needs to be changed to professional wording. It would be appropriate to express that the company’s prices are flexible because of the industry demands, with elastic pricing, so the inventory methods have to reflect this to maintain a profit. As coming into a period of rising prices the inflationary economic times may be explained. Both changes would advise the senior officers of what’s important to take into consideration without adding any information that is not necessary. The…...

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