Question

3. Oscar Geer, a mid-level product manager for Theresa’s Shoes, thinks his company should switch from LIFO to FIFO. He says, "My bonus is based on net come. 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

Answer 1

Answer:NO, he his not correct

Step-by-step explanation:

The fifo and lifo method are only a method of managing stock which means the earliest stock are issued out first in FIFO and last stock are issued out first in LIFO.

Either do not have a predictable advantage over the other in determining net income.