The Effects of LIFO Inventory Costing on Resource Allocation: A Reply.
回应Harry Zvi Davis对作者先前文章的评论，澄清LIFO公司比非LIFO公司消耗更多资源维持年末存货水平的结论在数学上成立，但Davis的修正需满足特定条件。
Abstract In this article, the author responds to comments by the accounting expert Harry Zvi Davis, on his article "The Effects of LIFO Inventory Costing on Resource Allocation," that was previously published in the journal "The Accounting Review." The author says Davis suggests that his paper's conclusion is that a firm that uses LIFO will necessarily expend more resources to maintain year-end inventory levels than will a firm that does not use LIFO. Based on the mathematical development of the argument contained in the appendix to my article, this is, in fact, the conclusion. However, notwithstanding Davis' correction, the conclusion as set forth in the paper may still be correct when viewed from other perspectives. In order for Davis' conclusion to be correct, LIFO firm's ending inventory for each year must be identical with that of the non-LIFO firm, not merely non-decreasing. The probability that LIFO has no effect on resource allocation becomes even smaller when one takes into account all LIFO pools that exist in any given year.