Under a high-inflation economy, using FIFO results in a significantly lower COGS, leading to a higher taxable income and tax bill. Therefore, inflation rates may impact a business’s choice to use either FIFO or LIFO. Under LIFO, remaining inventory may not be a reflection of market value. This is because older inventory was often purchased…

It is based on the principle of fairness and aims to prevent one party from unjustly benefiting at the expense of another. A quasi-contract is a legal remedy developed by courts to address situations where one party is unjustly enriched at the expense of another. Despite the absence of a formal agreement or mutual consent,…