Berrian's managers should consider the (FIFO or weighted-average) method because even though it

shows (lower or higher) operating income and (lower or higher) cost of goods sold, it (lowers or raises)

taxes. Managers may have an incentive, however, to use the (FIFO or weighted-average) method and

show higher income if the managers' compensation increases with (lower or higher) operating income or

if there are debt covenants that would be violated by showing (lower or higher) income. Another

advantage of the FIFO method (is that it provides better information for managing the business because it keeps separate the costs of the current period from costs incurred in previous periods or smootsh the cost per equivalent unit).