LIFO vs. FIFO
LIFO vs. FIFO
The controller of Sagehen Enterprises believes that the company should switch from the LIFO method to the FIFO method. The controller’s bonus is based on the next income. It is the controller’s belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods?
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There are two main inventory problems that face retail businesses, which buys and sells inventories, that is, knowing the cost of goods sold and knowing the value of the closing stock and as a result, various inventory management techniques are used (Rich, 2009). The common methods of valuing inventory and the cost of goods sold are the weighted average method, LIFO,………………….
APA 499 words