(1) Briefly describe each of the inventory methods (FIFO, LIFO, Weighted Average). How is each method different? What are the advantages and disadvantages of each method?

(2) Which method might you prefer if you were a manager and your bonus was tied to a financial performance measure such as net income? Could this ever lead to a conflict of interests?

(3) Shouldnt a company always select the inventory method that results in the highest net income so the business looks good? Please discuss.