The Inventory Valuation Dilemma

You are the new accounting manager at 'Innovate Inc.', a company that manufactures electronic gadgets. The prices of raw materials have been steadily rising over the past year. The company has historically used the FIFO (First-In, First-Out) method for inventory valuation. The CFO wants you to analyze if switching to LIFO (Last-In, First-Out) would be beneficial.