COST DETERMINATION METHOD$$

Question $1)$

Peter owns a computer store in Montreal and has just started the sale of a new model of stylus. In that industry, prices of goods are constantly decreasing. Peter wants to report a profit as small as possible to save income tax. Which method will you recommend $?$

Answer $1$ Question $1$Specific Identification Method because it's the most precise methodFIFO because COGS will be higherFIFO because COGS will be lowerAverage method because COGS will be higherAverage method because COGS will be lowerAny method would be fine

Question $2)$

Amanda will open shortly a new grocery store and her objective is to maximize the cash$-$flows of the company. Which method will you recommend to help Amanda achieve her objective $?$

Answer $2$ Question $1$