Question: Your compensation as inventory manager includes a bonus plan based on gross profit. Your boss asks your opinion on changing the inventory system from FIFO

Your compensation as inventory manager includes a bonus plan based on gross profit. Your boss asks your opinion on changing the inventory system from FIFO to LIFO. Costs are continuing to rise and the boss realizes that using LIFO will result in a tax savings. NOTE: The method you choose does NOT impact the physical flow of goods in the company.

What do you recommend?

Does this result in an ethical dilemma for you? Why or why not?

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