Find an article in the KU library that discusses how accounting for inventory is related to your future career. For example, if you plan to open and manage a small boutique discuss how you should account for the inventory in the store. As part of that discussion, discuss what method of inventory valuation (FIFO, LIFO, etc) would be most appropriate based on your example. How would you use this inventory valuation information to make financial decisions for your company?
The company you work for uses FOB shipping point for all their sales. Inventory is usually shipped one week after the item was ordered. It is late December, and your company has had a great year with profits already beating expectations. Your manager tells you to delay shipment until January on any new orders, so that the revenue will be reflected on next year’s financial statements.
Do you agree or disagree with the manager’s decision of when to ship goods to customers and record the revenue? Explain your reasoning. Is there an accounting rule against this practice?