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
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?