Col. Batguano
75 Cal.
- Joined
- Feb 10, 2011
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It's like any inflationary period. Manufacturing margins and and margins on inventories go up so long as the cost of manufacturing doesn't follow suit, which it typically does. In times like that companies will typically change their accounting methodology from FIFO (first in first out) to LIFO (last in first out) to lessen their tax liability.