Question: Thomas Holme, a mid-level product manager for Dorothys Shoes, thinks his company should switch from LIFO to FIFO. He says, My bonus is based on

Thomas Holme, a mid-level product manager for Dorothy’s Shoes, thinks his company should switch from LIFO to FIFO. He says, “My bonus is based on net income. If we switch it will increase net income and increase my bonus. The company would be better off and so would I.” Is he correct? Explain.

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