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Inventory Valuation Methods and Ethical Considerations
Resources
Inventory Valuation Methods and Ethical Considerations Scoring Guide.
Capella Graduate Resources: APA Style and Format.
Course Alignment Map
Activity Context
Revisit the MBA6014 Course Alignment Map to review how all activities assist you in achieving the course competencies and overall program outcomes.
Activity Instructions
Net income results, reported in the financial statement presentation, can be affected by the inventory reporting methods used. FIFO, LIFO, and weighted average methods each have their own implications during periods of inflation and deflation. Assume the role of a manager, employee, or an investor, and in 1-2 pages analyze the GAAP and ethical implications of each reporting method in a hypothetical company. Then, given your role, select which reporting method you would use, and explain why. Consider tax liabilities and profit levels in your response, as well as ethical considerations you may have for your valuation method selection.
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