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Inventory Valuation Methods and Ethical Considerations

May 6, 2023

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 1–2 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 Written communication: It should be free of errors that detract from the overall message. APA formatting: Resources and citations are formatted according to APA (6th edition) style and formatting. Length of paper: 1–2 pages, not including cover page and references. Font and font size: Times New Roman, 12-point. 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.

#Inventory #Valuation #Methods #Ethical #Considerations

Considerations, Ethical, Inventory, Methods, Valuation

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