1) What is a periodic inventory system, and what is a perpetual inventory system? Why might an organization choose one over the other?

2) How do accountants keep track of the number of units sold, if they are using the periodic inventory method? (Hint-basic equation).

3) What are the four basic cost flow methods for inventory valuation? Briefly describe each method and indicate the implications for financial reporting.

4.) How might IFRS affect inventory costing if incorporated into US GAAP?