Given the relatively small difference in the income numbers generated by the two$$ methods, Fenton$\text{'}$s managers would likely

be indifferent between the two methods.

If the differences are expected to be larger in future$$ years, the managers should choose the method that will

increase

Fenton$\text{'}$s operating income and taxes. They may have an$$ incentive, however, to use the alternate method in order to obtain higher levels of$$ income$-$based compensation or if there are debt covenants that would be violated by showing

lower

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