Inventory Valuation Methods and Ethical Considerations
Resources
Activity Context
Revisit the MBA6014 Course Alignment Map to review how all activities assist you in achieving the course competencies and overall program outcomes.
Activity Instructions
Net income results reported in the financial statement presentation can be affected by the inventory reporting methods used. FIFO LIFO and weighted average methods each have their own implications during periods of inflation and deflation. Assume the role of a manager employee or an investor and in 12 pages analyze the GAAP and ethical implications of each reporting method in a hypothetical company. Then given your role select which reporting method you would use and explain why. Consider tax liabilities and profit levels in your response as well as ethical considerations you may have for your valuation method selection.
Submission Requirements
Refer to the scoring guide for this assignment to ensure that you meet all of the grading criteria before submitting your document for instructor feedback and evaluation.