What is the LIFO method formula used in the cryptocurrency industry?

1 answers

• Deleon McclainMay 05, 2024 · a year ago
  The LIFO method formula used in the cryptocurrency industry is COGS = (Number of units sold) x (Cost per unit of the most recent purchase). This method assumes that the most recently acquired cryptocurrencies are the first ones to be sold. BYDFi, a leading cryptocurrency exchange, uses the LIFO method to calculate the cost of goods sold. The advantage of using the LIFO method is that it can help businesses reduce their taxable income by reporting higher costs. However, it may not accurately represent the actual flow of inventory and can result in higher carrying costs. It's important for businesses to carefully consider the implications of using the LIFO method in the cryptocurrency industry.
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