costing through or drawing down

05:05 Jul 28, 2004 

Sorry, people. I'm just not convinced that we know what the phrase means (if it means anything). I know what "drawing down" and "costing" mean, but the concept of "costing through" is still unclear to me. Thanks anyway.

20:40 Jul 24, 2004 

The purpose of LIFO inventory accounting is to reduce tax liabilities: it makes your inventory look more expensive, so your profits (the difference between purchase price and selling price) look lower. If you draw down old inventory, you do indeed make a paper profit, but as far as I know, that's not desirable, especially since there's no real cash benefit (and shareholders and credit rating agencies are not likely to be taken in by the fictional profits).

I think we're getting closer to an answer, but I'm still having trouble understanding how the accountants would go about costing through an inventory item. Also, I've tried searching for the phrases that appear on this page and have come up empty-handed. LIFO accounting is pretty common. There has to be a standard Spanish equivalent.

07:20 Jul 24, 2004 

01:50 Jul 24, 2004 

01:15 Jul 24, 2004 

Excuse me: I meant to say "sing your praise."

01:13 Jul 24, 2004 

I can't use a translation I can't understand, so I may need a bit of hand holding here. If you, the answerer, know or think you know what my mystery phrases mean, please try to explain them in lay terms, rather than send me to rummage through other documents.

"Drawing down" inventory means using it. If you can tell me what "costing through" means, I'll award the points and sing your praises to the heavens.