Managerial accountants base their choice between the weighted-average method and the first-in,first-out method based on a desired effect on taxes,operating income,performance evaluation,and debt covenants.

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Managerial accountants consider the impact of inventory costing methods on various factors, including taxes, operating income, performance evaluation, and debt covenants, when choosing between the weighted-average method and the first-in, first-out method.

Managerial Accountants Base Their Choice Between the Weighted-Average Method and the First-In,first-Out