313 words - 2 pages
Professor Heike Soeffker-Culicerto
Alignment Between the Stated values and Plan
RRI Energy Inc., or currently known as GeoOn, Energy, Inc is a Fortune 500 index company and a pioneer in developing cleaner and smarter energy. Like most companies in this position, RRI Energy has remained true to their core values, which has provided the foundation for their business decisions. RRI uses an acronym, STRIVE (Safety, Teamwork, Respect, Integrity, Value Creation, and Exemplary Leadership) to effectively convey their core values. Remaining loyal to its investors, employees and communities RRI Energy serve they have made safety their #1
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Time value of money is the concept that shows the value of money which decreases day by day. There are so many factors which contribute to the time value of money such as inflation and increasing interest rates. The time value of money is sued to solve the problems which are related to the loans, mortgage, leases, saving and annuities. In the investment, time value of money is used to compare the alternatives of investment (Weil, 1990). The time value of money is based on the concept that money that anyone has today is worth more than the expectation which one will receive in the future.
The money which is hold in the present is worth more because it can be invested and can earn the
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Time Value of Money
Table of Contents
Time Value of Money………………………………………………………………..4
Future Value and Present Value…………………………………………………......5
Time value of money operations are the backbone of financial decisions in business. The basics of their operation lie in interest calculations that can be used to determine the value of money five years ago, today and even well into the future. These calculations can be tricky and are weighed with outside challenges that can affect them positively and negatively
1846 words - 8 pages
VALUE CHAIN ANALYSIS
A) Discussion of the core elements of a value chain. (8 marks)
B) Explanation of why an understanding of these elements is so important in managing costs and gaining or sustaining competitive advantage. Establish all important linkages in your answer. (12 marks)
The value chain analysis is a useful tool for defining a firm’s core competencies and the activities in which it can pursue a competitive advantage. The core elements of a value chain analysis are the primary and secondary activities and cost. Companies use these primary and support activities as "building blocks" to create a valuable product or service.
The Primary activities relate directly to the
1658 words - 7 pages
Higher Education Core Value Paper/ Commitment
Identification and analysis of the identified Core Value
Presently, there are many aspects of Higher Education. Some are physical; the campus and its classrooms, laboratories, and library. Those spaces are occupied by students, faculty, and staff and some are nonphysical. “The activities of Higher Education are learning, research, dialogue, and reflection. Thus far, none of these attributes are unique” (Shephard, 2007, p. 87). The most distinctive attributes of Higher Education today are its commitment to their students.
“Higher Education for Sustainability: seeking affective learning outcomes
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Incorporating sustainability and Responsible Business Behaviour into the Core Business by
Creating Shared Value: Inclusive Business
Our mission is to create an initiative that combines social responsibility, sustainability and business strategy
Teach them basics of selling
Commercial knowledge and book keeping
To make them full fledged micro-entrepreneurs
Make them economically and socially independent
Belief in win-win model for both: the company and rural people
Providing necessary infrastructure and training to ladies
Improved living standards of
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Project Management triangle there are other variables that have been added to define success known as square root. As project management is a learning profession , based on the past mistakes and ideas there are numerous theories and suggestions that have developed or developing. But, then the question arises what is the best criteria to define success or Is there a single framework or model that can be used to define success??. In a nutshell , it can be said that there are numerous ways to define project success but the most important are in terms of Cost (Total cost of the project undertaken), Time (Devoted time to complete the project), Quality (Value delivered by the project), Stakeholders
2103 words - 9 pages
Time Value of Money Terminology
Terminology (AKA jargon) can be a major impediment to understanding the concepts of finance. Fortunately, the vocabulary of time value of money concepts is pretty straightforward. Here are the basic definitions that you will need to understand to get started (calculator key abbreviations are in parentheses where appropriate):
A banker's year is 12 months, each of which contains 30 days. Therefore, there are 360 (not 365) days in a banker's year. This is a convention that goes back to the days when "calculator" and "computer" were job descriptions instead of electronic devices. Using 360 days for a year made calculations easier to do. This
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The Indian pharmaceutical market is highly competitive and remains dominated by low priced, domestically-produced generics. In value terms, India accounts for less than 4% of the world market and per capita expenditure on pharmaceuticals is relatively low. By 2010 end, the domestic Pharma market in India is expected to be US$ 13.76 billion and this is likely to increase at a compound annual growth rate of 9.5-10 per cent till the year 2015. The success and failure of any project in this industry is largely dominated by R&D spending. R&D spending of the large firms is almost as high as 10 percent of the total earnings. The aim of our study is to find out what effect R&D spending has on the
1441 words - 6 pages
Expected Value and Consumer Choices
Consumers’ choices are prey to subtle discrepancies that arise in cognitive accounting and identifying how and when you are susceptible is an important step in improving the decision making process (Tvorik, 2014). This paper will consider why people value gains and losses differently in different circumstances by addressing what mental accounting is and how it impacts consumer decision making; and how a company can take advantage of their consumers’ mental accounting (Tvorik, 2014). This writer will also consider different scenarios from differing points of view; as a marketer and as a consumer. As a marketer, this writer
996 words - 4 pages
General Mills, Inc.
The Value of Sustainability
The General Mills, Inc. Leadership Team for Global Responsibility Programs and Performance is headed by Chief Executive Officer, Ken Powell, and Chief Sustainability Officer, Jerry Lynch. With two other top-management leaders, this team is dedicated to proactively working towards sustainability. The company mission statement hints at sustainability goals with phrases such as “products that make life healthier, easier, and richer”, “Do the right thing, all the time”, and “Grow and inspire”. Based on the achievements and goals set by the company, General Mills
5479 words - 22 pages
E – Commerce & Value Chain Integration
(1) What is E COMMERCE ?……………………………………………..……………………… 1
(2) What is
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60 per cent in the last two years. CNG distribution network in India is expected to increase to 250 cities by 2018 from 30 cities in 2009.
iv. Inflation: Inflation also exhibits a negative correlation with automotive sales revenues. This is due to reduction disposable income and forcing buyers to postpone demand especially in the case of individual buyers. Also an increase in input costs is also generally passed on to the buyer thus moderating the demand further.
6. Exchange Rate: Movement in the value of Rupee determines the attractiveness of Indian products overseas and the price of import for domestic consumption.
7. Localized components: Most of the international companies
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The Value of Shakespeare Today
What makes Shakespeare stand out from other playwrights of his era is his deep understanding of human nature and the human condition, the timelessness of his works, and hi
exquisite mastery of the English language. The Renaissance (during which he wrote) was a particularly transformative time in English history, initiating a sense of English nationalism and pride in English as a language of art. Some critics continue to challenge his authenticity and relevance making the future of Shakespeare within the curriculum of both secondary school and higher education at stake. Shakespearean Literature still speaks to modernity and is therefore important in the
1868 words - 8 pages
Number words in essay:1755
Five forces and the Value chain analysis.
The purpose of this essay is to present business decisions and strategies through analysing external environment and internal competencies based on Michael Porter's Five force and Value chain models.
The Fife force model include: threat of entry, threat of substitutes, power of buyers, power of suppliers, competitive rivalry.
Future content includes determining Potter's Value of chain, which are primary activities: inbound logistic,operations, outbound logistic, marketing and sales, service and support activities: firm infrastructure, human resource management, technology
443 words - 2 pages
Apple’s Core Value Enlighten Apple’s Employee Engagement
Apple’s core values are the qualities, customs, standards, and principles that the company believes will help it and its employees succeed. These values are the basis for what Apple does and how Apple does it. These values govern Apple’s business conduct.
Innovation/Vision: Apple built on innovation, providing products that were new and needed. Apple accepts the risks inherent in following their vision, and work to develop leadership products that command the profit margins Apple strive for.
Positive Social Contribution: Apple build products that extend human capability, freeing people from drudgery and helping them achieve
557 words - 3 pages
Level 3 and Cloud Computing
Level 3 Shapes the Cloud
Any Cloud Computing application or service exhibits two characteristics. First it uses virtualization to decouple the end user from the actual service and second it employs a pay-as-you-go business model. Virtualization is the key technology, while pay-as-you-go provides the business flexibility.
Virtualization let’s users take advantage of a service without the concern of owning or managing the actual physical resources used to provide the service. From a business perspective this allows IT departments to take advantage of a multitude of technologies to cost optimize the way they deliver services. Regardless of the type of
1541 words - 7 pages
The Role of the Engineer in the Value Chain
49680: Value Chain Engineering Systems Assignment 1
LE Ngoc Thang 11187604
Table of Contents
1. Summary 5
2. Introduction 6
3. Value Chain 7
4. Engineering in Value Chain 9
4.1 Inbound Criterions 10
4.2 Warehouse management Criterions 11
4.3 Logistics Operation Specifications Criterions 11
5. Conclusion 14
6. Reference 15
Table of Figures
Figure 1 Supply chain of a Router 7
Figure 2 Engineering Value Chain model 9
This report focuses on the key component of a business, which is Value Chain. Value Chain, as Michael Porter's definition is those activities that add value to the products and/or service provided by the
277 words - 2 pages
If you’ve been trying to understand how do you value a website or internet business you’ve come to the right place. Accurately valuing a website for sale can for many be the most challenging part of the purchase process. The removal of physical assets with internet businesses can sometimes complicate valuations further but if you’re clear on the pros and cons of the methods available, gather the right data on the relevant valuation drivers and apply this correctly, you will almost always arrive at a website valuation that makes sense.
At FE International (FEI) we value and broker the sale of internet businesses with a wide range of monetisation strategies (e.g. SaaS, AdSense
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increased thus integrating business value and social progress.
Secondly Starbucks when aiming to make a market entry in India adopted a India-specific CSR strategy to raise the domestic coffee industry to Starbucks standards and thus gain the government approval to enter the India market. Starbucks’s inital attempts to enter the Indian market had failed due to lack of political support, however with this startegic CSR startegy Starbucks was able to gain the local government support. It worked with Conservation International and the Coffee Board to raise coffee farmers to C.A.F.E. and Fair Trade standards and thus not only secured market entry but also secured local coffee supply thus
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• In what kind of teams have you participated?
I have personally participated in many team efforts. My team experiences all vary, from the workplace to sports that I played throughout high school. I have also worked in teams for school work and personal projects. For me, each experience has been different and rewarding. With each team that I participated with, I learned a lesson from how to deal with different personalities to dealing with different subjects and different circumstances. I have learned that it all depends on the group of people and what type of attitudes each individual has toward the team aspect. In each group and team, I was in, there was always some type of conflict
738 words - 3 pages
Mental, emotional processes and the physical activities of people in regards to a product or service they provide is something marketers need to study in order to be market leaders in their respective industries thus the study of consumer behaviour is very vital for firms to survive. Consumer behaviour is the study of individual, group, or organisations and the processes they use to select, secure use and dispose of products, services, experience, or ideas to satisfy needs and impact that these processes have on the consumer and society.
Consumer behaviour is important as it concerns with modern marketing philosophy that identifies consumer needs and satisfy them more effectively than
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The United States is a country of diversity represented by many different cultures. It has been proven that culture has a significant impact on health beliefs and behaviors (Edelman, et al, 2014), therefore it is imperative that health care providers, especially nurses, be culturally competent in their delivery of care. It is not enough to merely be aware of the prominent origins and statistics of different cultures and ethnicities, but rather it is crucial to be inquisitive and focus on the family and individual as practices differ and evolve over time. Rachel Spector developed a Heritage Assessment interview as a useful tool to aid in understanding how strongly an individual or family
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Homework Assignment for Week 6:
For Week 6, please turn in the answers to the following questions:
1. Why do we say money has time value? Money to be received or paid at one time is not the same value of money to be received in the future.
2. Why is it important for business managers to be familiar with time value of money concepts? Managers need to consider the concepts when making decision.
3. Define Present Value. The present value tells us what s future sum or sums would be worth if we had those funds today.
4. Define Future Value. The value of an asset or cash at a specified date in the future.
5. What are present value
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1) The lifetime value of a typical customer in each segment when the discount rate is 15%.
* Exhibit 1 shows that the customer lifetime value for each segment with a 15% discount rate.
* The lifetime value of a typical customer in the platinum( top 20%) segment is worth $3496.
* The lifetime value of a typical customer in the platinum( low 80%) segment is worth $2394.
* The lifetime value of a typical customer in the gold ( top 20%) segment is worth $1415.
* The lifetime value of a typical customer in the gold ( low 80%) segment is worth $769.
* The lifetime value of a typical customer in the Silver( top 20%) segment is worth $406.
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Sampa Video Case Study
The NPV of the project entirely equity financed is $1,228.
The appropriate discounted rate is 15.8%.
The APV of the project assuming the firm uses fixed debt of $750 thousand and keeps the level of debt constant in perpetuity is $1,528.
The NPV of the project using after-tax WACC and assuming a constant 25% target debt-to-value ratio in perpetuity is $1,470.
Answer 1 – 3, please see attached spreadsheet for calculations.
25% debt balances at year end imply interest tax shield.
The value of APV is higher than the value of WACC. Because APV method doesn't have to hold debt at a constant proportion of value. So, it can be assumed that the risk of the
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PIZZA HUT & VALUE CHAIN ANALYSIS:
About Value Chain Analysis:
Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. A value chain identifies and isolates the various economic value adding activities such as differentiating a product, lowering the cost, and meeting need quickly that occur some way in every firm. It portrays activities required to create value for customers of a given product or service. It tells where low cost advantages exist; in what ways each activity can be undertaken so as to differentiate it from that of a firm’s competitor, how to deliver satisfaction to
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Lessee Ltd., a British company operating under IFRS, leased equipment from Lessor Inc. for a period of three years. Lease payments of $100,000 are paid annually by Lessee Ltd., as well as $2,000 of other expenses including insurance, taxes and maintenance. The lessee’s incremental borrowing rate is listed at 11%, and the lessor’s implicit rate is calculated at 10%. The equipment reverts back to the lessor at the termination of the lease. The equipment has a 4-year useful life and a fair value of $265,000. Additionally, the guaranteed residual value of the equipment is $20,000 and the expected salvage value is $2,000.
Issue #1: How should Lessee Ltd.’s Lease Be Classified
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Summary: XYZ is concerned about the plant’s present production capability. The Vice President, Katherine Rally is contemplating three alternatives:
1) Full automation;
2) Semi-automatic; and
3) Doing nothing.
She identified Capital investment, Annual Revenues, Useful life, and Salvage Value of the plants as random variables and noted down their respective probability distributions. The case requires developing a simulation of 50 sample points of Average Worth (AW) at the MARR of 20% and selects the most suitable alternative.
Question-a: I used Excel Random Number Generation (RNG) function to generate 50 sample values for each random variables: Capital investment, Annual Revenues
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For the question one, we have the income statement for the Penelope. We need to find the FCF to calculate the NPV for the project, FCF=EBIT –TAX+ Depreciation-capital spending- change in NWC. In order to find the PV of project, we need to calculate the cost of capital. We use the asset beta 1.2, Risk free rate(10%), market premium(4%). Then the cost of capital is equal to 14.8%. Then we discount the cash flow, we get PV of 1st generation project ($6,629,929). The NPV of the project is $-3,370,070.
For the question two, we need to find out the expect value of the second generation. Before start the second generation, we need to make the first generation first. The cost for the
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premium, leaving a net investment
(called the bond’s book value) of
$1052.42 Ϫ $7.90 ϭ $1044.52
This book value becomes the beginning investment for the next six months. You then
apply the same line of reasoning to this amount in the second interval, and so on.
Earned interest is always calculated on the book value of the bond after the
previous coupon payment. For the interest rate, use the yield to maturity that
was “locked in” on the bond’s date of purchase.
The effect of this treatment is to periodically reduce the book value of the bond (and
the book value of the premium). After the final interest payment, the bond’s book
value will be reduced
1044 words - 5 pages
Capital Budget Recommendation for Guillermo
Lynda D. Keller
June 23, 2014
Capital Budget Recommendation for Guillermo
The first and most necessary goal of any organization is to maximize shareholder wealth. Maximizing shareholder wealth includes identifying and analyzing future projects that can provide value. Typically in a risk-return trade off the greater the risk, the higher the return. According to Krenz and Miller, “organizations undertake risky directions when the outcomes are so desirable that the probability of failure makes it worthwhile,” (Krenz & Miller, 2011, p. 18). Guillermo’s Furniture Store is facing increased competition, especially
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EARNED VALUE IN PROJECT MANAGEMENT
Earned value is a term used in project management to refer to the process of assessing and evaluating the performance and progress of a given project in a purposeful and objective manner. According to Semolic (2009) and Webb (2009), most project managers usually use earned valued due to its ability to combine measurements of scope of a project, schedule of activities and costs incurred during the development and implementation of a project using a single system that is highly incorporated and integrated. Earned value helps in proper management, control and planning during project implementation. In addition, earned value is also preferred to other
573 words - 3 pages
In order to determine if the proposal is appropriate and economically viable, the $240,000 savings of labor costs must be discounted to its present value. The present value interest factor for a one-dollar annuity is discounted at 10% for five years. The first year there was a positive cash flow of $218,182, the second year was $198,347, the third year was $180,316, the fourth year was $163,923, and the fifth year was $149,021. The present value of labor cost savings equals to $909,789 from the whole five years. The initial investment is subtracted from the present value of cost savings. The calculation would look like this, ($909,789-$200,000). The net present value equals to
1137 words - 5 pages
Eagle Impairment Case
The following report outlines an analysis of Eagle Company’s assets in Serbia and Italy. With the information provided, we have created a detailed report to assess which assets should be impaired along with its impairment value under the IFRS and US GAAP standards.
Eagle in Italy
Eagle owns a commercial building in Italy. The carrying amount is $1,100 with $900 being the value in use. According to IAS 36 P18, “An asset is impaired when its carrying amount exceeds its recoverable amount.” In this case, the carrying amount ($1,100) exceeds the recoverable amount (Higher of Value in use) of $900. Eagle should report an impairment loss of the
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Long-Term Financing Paper
For a publicly traded company, shareholder value is the part of its capitalization that is equity as opposed to long-term debt. In the case of only one type of stock, this would roughly be the number of outstanding shares times current share price. Things like dividends augment shareholder value while issuing of shares (stock options) lower it. This Shareholder value added should be compared to average/required increase in value, also known as cost of capital. For a privately held company, the value of the firm after debt must be estimated using one of several valuation methods, such as discounted cash flow or others. Discounted Cash Flow (DCF) is used to
972 words - 4 pages
EACC: Real Options on M&A
Case 1: The Value of a Company with an Option to
Firm Z is facing the chance to expand its business. Currently, the value of the
assets in place of this company is e18M. The company has the chance to expand its
business in 30% with an investment cost of e4M. The volatility is 20%, the dividendyield is 6% and the risk-free rate is 2%.
1. What is the value of this company?
2. Describe, based on the real option approach, what are the characteristics of the
Case 2: The Optimal Timing for Merging I
Firm C is facing the chance to acquire Firm D. Consider the following information
about this operation:
Expected value after the
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PMP® Formula Pocket Guide
Print it - Fold it - Study wherever you go.
CV = EV - AC CPI = EV / AC SV = EV - PV SPI = EV / PV EAC ‘no variances’ = BAC / CPI EAC ‘fundamentally flawed’ = AC + ETC EAC ‘atypical’ = AC + BAC - EV EAC ‘typical’ = AC + ((BAC - EV) / CPI) ETC = EAC - AC ETC ‘atypical’ = BAC - EV ETC ‘typical’ = (BAC - EV) / CPI ETC ‘flawed’ = new estimate Percent Complete = EV / BAC * 100 VAC = BAC - EAC EV = % complete * BAC
Average (Mean) = Sum of all members divided by the number of items. Median = Arrange values from lowest value to highest. Pick the middle one. If there is an even number of values, calculate the mean of the two middle
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achieve a 15% to 20% ROI.
Target – returns price = Unit Cost + Desired return * Invested Capital
3. PERCEIVED- VALUE PRICING: - An increasing number of companies now base their price on the customer’s perceived value. Perceived value is made up of several elements, such as the buyer’s image of the product performance, the channel deliverables, and the warranty, quality, customer support, and softer attributes such as the supplier’s reputation, trustworthiness, and esteem. Companies must deliver the value promised by their value proposition, and the customer must perceive this value. The key to
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Leasing Inc. and have an unguaranteed residual value of $30000. Their implicit interest rate is 10%. |
6) Kingdom Leasing, Inc. Incurred costs of $6500 in negotiating and closing the lease. There are no uncertainties regarding additional costs yet to be incurred and the collectability of the lease payments is reasonably predictable. |
a) Determine what type of lease this would be for the lessor and calculate the following: (show all work)The lease term exceeds 75% of the asset's estimated economic life. In addition, Kingdom Leasing realized a profit. Also, the collection of payments is reasonably assured and there are no further costs to be incurred. As a result, this
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California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share. The firm’s dividend is expected to grow at a constant rate of 5% per year, and investors require a 15 % rate of return on the stock.
1. What is the stock’s value?
Stock value does not have a constant value. The value fluctuates based on the number of factors which includes dividends, investment growth, and the conditions of economy and financial markets. The stock value is $21.00.
E(P0)= $2.00x 1.05 = $2.10 = $21.00
2. Suppose the riskiness of the stock
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Problem 19-3 (Chapter 19) on Warrants
This problem is posted on page 781 of the textbook.
Maese Industries Inc. has warrants outstanding that permit the holders to purchase 1 share of stock per warrant at a price of $25.
a. Calculate the exercise value of the firm’s warrants if the common sells at each of the following prices: (1) $20, (2) $25, (3) $30, (4) $100. (Hint: A warrant’s exercise value is the difference between the stock price and the purchase price specified by the warrant if the warrant were to be exercised.)
b. Assume the firm’s stock now sells for $20 per share. The company wants to sell some 20-year, $1,000 par value bonds with interest paid annually
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BGA1 Task 4 308.1.8-05,12
The weighted average cost of capital for this company is 9.48%.
Cost of capital is often used in net present value analysis as the discount rate, which is the rate that other investments would return that have similar risks. Cost of capital is the total of all of the actual costs of a company’s debts and equities. These costs include such factors as interest, tax expense, and equity costs. It is what percentage it costs the company to tie up its capital, so in order for an investment to be desirable, it must return a percentage greater than what it takes for the company to cover its capital costs. In a net present value analysis, the cost of capital is
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Equity Multiplier = TA/TE
Times interest earned = EBIT / Interest
BEP = EBIT / Total assets
Inventory Turnover = Sales/Inventory
Days Sales in Inventory = 365 / Inventory Turnover
Receivables Turnover = Sales/ Receivables
Days Sales Outstanding (DSO) = Receivables / (Sales/365)
Days’ Payables Outstanding (DPO) = Payables/ (Sales/365)
Cash Conversion Cycle (CCC) => you have to remember!
Total Asset Turnover = Sales/TA
Profit Margin = NI/Sales
Return on Assets=> you have to remember!
Return on Equity => you have to remember!
ROE = PM * TA TO * EM = ROA*EM
External Financing Needed (EFN) = (A*/S0)ΔS – (L*/S0) ΔS – PM(S1)(RR)
Present Value of one CF => you have to remember
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Commercial Fixtures Inc. + Business valuation overview
Suggested questions for the Commercial Fixtures Inc. case are given below.
1. What would you as an outside third party bid under the same conditions (with the same information) for the entire company (both halves)? Why?
2. What do you expect Albert Evans to bid for Gordon’s half interest? Why?
3. What should Gordon Whitlock bid for Albert’s half interest? Why?
4. How would you structure the purchase of the business?
Question #1 is a business valuation question. There are a number of ways to estimate the value of a business. You have probably covered one or more of these ways in a previous class
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of production for such sales, or
* Are to be currently consumed in the production of goods or services to be available for sale” (Schroeder, Clark, & Cathey, 2011, p. 264).
Inventory physical count can be determined by using periodic or perpetual inventory system. The valuation of inventory is of significant importance for multiple reasons. First ending inventory constitutes major part in current assets and have substantial impact on working capital of the organization. Second, inventory value has direct impact on the net profits of the organization. There are several methods available in US Generally Accepted Accounting Principle (GAAP) for valuation of inventories, such as FIFO