Why does Cooper use LIFO for cost flow purposes?
Cooper uses LIFO in the United States as it provides a benefit in reducing taxes compared to FIFO. This benefit is derived by lowering taxable income during periods when costs are rising.
What is Cooper's Raw Material Index?
The Raw Material Index is based on a fixed basket of goods that are typically used in manufacturing a tire. The raw material index does not always translate directly to the income statement, but it does provide a valuable resource in understanding the direction that raw materials have moved.