Discussion-Inventory Cost-Flow Assumptions-Why They Matter

    Week 03 Discussion – Inventory Cost-Flow
    Assumptions – Why They Matter:

    Place yourself in
    the position of an upper-level manager in the corporate office of The Home
    Depot.
    You are in a
    meeting, the purpose of which is to discuss the inventory cost-flow method that
    is most appropriate for the company. You realize that the method you recommend
    would have important implications to the calculation of “ending
    inventory” of your company’s balance sheet and “cost of goods
    sold” on the income statement. You are further aware of the tax
    implications of a given method.
    For this Discussion: In your opinion, which
    inventory cost-flow method is most appropriate? Why?

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