Differences between the lifo and fifo methods

Reference no: EM13729186

Question 1:

The controller of Sagehen Enterprises believes that the company should switch from the LIFO method to the FIFO method. The controller's bonus is based on the net income. It is the controller's belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods?

Question 2:

A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the use of the asset. Your client has just purchased a piece of equipment for $100,000. Explain the concept of depreciation. Which of the following depreciation methods would you recommend: straight-line depreciation, double declining balance method, or an alternative method?

Reference no: EM13729186

Questions Cloud

Concept of seniority and merit pay plans : Define the concept of seniority and merit pay plans, including the strengths and limitations of such plans within an organization. Discuss the job, organizational and/or other factors that should be considered when deciding between the two.

High levels of performance : Discuss how incentive pay plans - both individual and group - motivate employees to achieve high levels of performance. Identify potential weaknesses of these plans and suggest steps that can be taken to make these plans highly effective.

What issue lay at the heart of the civil war : what issue lay at the heart of the civil war.

Create a backup proposal in case management : Create a backup proposal in case management does not approve your initial proposal. The backup proposal should have at least 3 changes different from the original plan.

Differences between the lifo and fifo methods : It is the controller's belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods?

Discuss the four barriers to information visibility : Discuss the four barriers to information visibility and transparency. If you were designing a new supply chain, how would you prevent each of these barriers occurring

Explain demographic and psychographic characteristics : What are 2 demographic and 2 psychographic characteristics of the customer who you think would be interested in purchasing the brand's products

Tax burden divided between buyers and sellers : Be sure your graph shows the equilibrium price before and after the tax, the equilibrium quantity before and after the tax, and the areas representing consumer surplus after the tax, producer surplus after the tax, tax revenue collected by the gov..

What is sexual harassment in the workplace : What is sexual harassment in the workplace? Was John guilty of sexual harassment? If you were Peggy, what would you do?

User Account

All Pages