Question
6.You are the inventory manager for a trendy urban retail inventory merchandiser. Your compen- sation includes a bonus plan based on the amount of gross
6.You are the inventory manager for a trendy urban retail inventory merchandiser. Your compen- sation includes a bonus plan based on the amount of gross profit reported in the financial state- ments. Your supervisor comes to you and asks your opinion about changing the inventory costing method from moving weighted average to FIFO. Since costs have been rising and are expected to continue to rise, your superior predicts the company will be more attractive to investors because of the reported higher profit using FIFO. You realize this proposed change will likely increase your bonus as well. What do you recommend?
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