Which inventory costing method will provide the highest net income for the company?


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Which inventory costing method will provide the highest net income for the company?


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Your boss has just contacted you about an inventory decision. It seems she is going to expand the business by

selling products along with providing consulting services. Your boss’ questions are emailed to you as follows:

Which inventory costing method will provide the highest net income for the company?

The company definitely plans to sell the oldest inventory first; does this affect the inventory costing method? Why?

Are there any other considerations in making this decision?

Which method would you recommend