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How and why does inventory valuation impact the waste of goods or products? Does the inventory valuation method ensure that older items are sold first

How and why does inventory valuation impact the waste of goods or products? Does the inventory valuation method ensure that older items are sold first OR does it merely influence the $ value assigned to the items sold and remaining in inventory? Also, can you please clarify what is meant by "tight income flow" and why are only small companies' candidates for this

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