While working in the accounting department of Zara. You are sent to attend an inventory meeting for the store located in the famous Barcelona mall. You are familiar with this store, as you usually buy there. It is pointed out by one of the head managers that the men’s shoe area is not profitable as it has a poor selection of outdated designs. There are not many sizes available and really few models. he and the other head managers are adamantly requesting to get a larger shoe inventory that can make the men's shoe area more appealing to customers. Explain the pros and cons of having a large inventory of shoes. - Explain if the terms LIFO, FIFO, and Weighted Average have anything to do with the actual physical flow of the items in inventory.

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Choosing a listing method for a corporation is over an accounting formality selecting either LIFO or FIFO as a list valuation method can affect the lo... View the full answer