compare Accounting experts only please

both_companies_use_fifo.docx

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1) Both companies use FIFO (first in, first out). Inventories are stated at a lower or market with cost being determined.

2) The main difference between both companies inventory are the products they are selling. You can buy almost anything from Amazon and third party companies through Amazon. Dell on the other hand only sells computer related products.

Particulars	Amazon (Amount in millions of dollars)	Dell (Amount in millions of dollars)
Total assets	25278000	44533000
inventory	4992000	3423000
Inventory/ Total assets	.0197	.076
percentage	20%	8%

4) If I were to change the valuation methods for Dell I would check what type of products we would be selling. To see how fast they should be selling. Then evaluate the prices of the inventory. Depending if I want to keep Dell a “mom and pop shop or not” I would pick FIFO or Average(because the numbers would not change as much).