Accounting – Discussion Question FIFO, LIFO Affect on Financial Statements

Your boss has just contacted you about an inventory decision. It seems she is going to expand the business by selling products along with providing consulting services. Your boss’ questions are emailed to you as follows:

  • Which inventory costing method will provide the highest net income for the company?
  • The company definitely plans to sell the oldest inventory first; does this affect the inventory costing method? Why?
  • Are there any other considerations in making this decision?
  • Which method would you recommend?

Respond as if to your boss in proper email format.


"Is this question part of your assignment? We can help"