BerrianBerrian$\text{'}$s

managers should consider the

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method because even though it shows

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operating income and

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$$

lower

higher

cost of goods$$sold$,$ it

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$$

lowers

raises

taxes. Managers may have an$$incentive$,$ however, to use the

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FIFO

weighted$-$average

method and show higher income if the$$managers$\text{'}$ compensation increases with

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lower

higher

operating income or if there are debt covenants that would be violated by showing

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lower

higher

income. Another advantage of the FIFO method is that it provides better information for managing the business because it keeps

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