You are the accountant for Tejada Company which is in its first year of business/operation. Your Vice President (VP) of Accounting has task you with presenting to him whether the company should use either First-in-First-Out (FIFO) or Last-in-First-Out (LIFO) cost flow assumption to value their inventories.

Given what you have read and our discussions in class of Chapter 8, provide a well-reasoned and detailed opinion why you would recommend either FIFO or LIFO cost flow assumption for your company to use. Provide specific examples and/or assumptions as to why you are recommending either method.