Topic: FIFO

Assume that you are opening a merchandising business. You have to make decisions about control procedures to implement in order to safeguard your inventory. You also have to make decisions about accounting methods to use to report inventory.

Tell why you would use the system/method in your new business. Factors to consider are ease of implementation, necessity to have up to date information, and the effect on net income. Give a thorough and detailed description of how you would implement the chosen system and method, in a way which demonstrates your understanding of the system and method.