Each group must perform research and present on the inventory system of the selected company. The research and presentation should include the following points: (i) The companys industry, business activities, types of inventory and the way the company manage their inventory. (ii) Discuss with justification on whether a periodic or perpetual inventory system is better for the company. (iii) Discuss with justification on whether First-In-First-Out (FIFO) or Weighted Average Cost (WAC) cost flow assumption is better for the company. (iv) In view of rising inflation, discuss the impact on profits if an alternative cost flow assumption is adopted instead of the current cost flow assumption used by the company.

The company that my group is doing for is challenger store, so the task is to research and present on the inventory system. so the question that needs to be answer is part III.