a.Perishable items must have an actual physical flow of FIFO
Explanation:
Cost flow estimates are required to determine the cost of goods sold and to end inventory. Companies make some ump habits about what goods are sold and what items are listed (as a result of various accounting methods).
Financial reporting and tax benefits and the actual movement of goods are not required to be accepted
The continuous inventory system may have different end inventory and COGS yields compared to the periodic inventory system due to LIFO's calculation time and weighted average cost flow estimates.
Reducing or exceeding the lower price of goods sold when prices fall or rise
