respond to: The use of inventory first$-$in$,$ first$-$out may also be a way for management to manage or manipulate earnings. For instance, with FIFO, expensing the company's lower$-$cost inventory items can help inflate net income $($Allenericap$,2023).$ In turn, this will make the company seem more favorable than it actually is and can help the company stay in compliance with debt covenants to avoid violations. Not only can this harm the company in the short or long term, it can also take away resources that other stakeholders could give another company based on the deception. In this type of situation, what do you think would be the appropriate ramifications of such actions? Transparency and appropriate disclosures would be a good start. Using an inventory accounting method such as FIFO can mask an underlying issue, such as manipulation$/$management decisions, to alter its state in order to avoid violations. What do you think would be the best course of action?