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Ashford 4: - Week 3 - Discussion 1Question:LIFO vs. FIFOThe 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? Guided Response:Analyze several of your peers’ posts. Let at least two of your peers know if a company is better off if it switches from a LIFO method to a FIFO method? Explain your reasoning. Answer:.Week 3- Discussion 1Kevin Martinez3/5/2015 10:42:16 AMThe methods used in for accounting for inventory that has remained unsold or , the cost of good sold or stocks that have been purchased at different prices whose price has to be determined at the time of reporting are LIFO and FIFO methods. LIFO stands for last in first out. This means that goods that have been purchased recently have been sold out