Tax-Cutting Inventory Management
Gary Biddle, Kipp Martin
Midland Corporate Finance Journal | Stern, Stewart, Putnam & Macklis, Ltd. | Published : 1985
Few firms take full advantage of the significant tax-cutting opportunities in inventory management. When inventory costs are changing, choosing the appropriate accounting method for inventories can dramatically reduce taxes. Additional savings can be obtained by tailoring inventory ordering policies and production schedules to match the accounting method. Recent advances in accounting research and inventory theory, as well as changes in tax and reporting rules, allow these savings to be captured.