Question

Based on the net income of the shop, the sales staff at francesca's fashions receive performance bonuses. in periods of declining prices, which inventory costing method would bring the sales staff the most benefit?

Answer 1

The best method for this case would be the one known as LIFO. This method, also known as The last in, First out, is fitting for the sales staff. Have in mind that this method is used to place an accounting value on inventory. This method states that the last item of the inventory is the first one sold which would benefit the sales staff.