ChipsetChipset's managers should consider the FIFO method because it leads to a higher cost of goods completed and transferred (and sold), thereby lowering taxes. The managers may have an incentive, however, to use the weighted-average method and show a higher level of current income if their compensation increases with higher operating income or if there are debt covenants that would be violated by showing lower income. ChipsetChipset's managers may also consider an advantage of the weighted-average method, which is that it provides better information for managing the business because it keeps separate the costs of the current period from costs incurred in previous periods