Simplified Dollar Value Lifo

Simplified Dollar Value Lifo means:
a method of pricing last in, first out inventories by establishing multiple pools in accordance with general categories set forth in applicable government price indexes. Changes in the published indexes are used to estimate the annual changes in prices for inventory items in the pools. This method can be used only by an electing, eligible small business with average annual gross receipts of $5 million or less for the 3 preceding tax years.