• I have a business that deals with furniture. Do you think businesses that deal with these items use a Perpetual or Periodic Inventory System? Explain your answer.
• Suggest one of the four types of cost flow assumptions for this type of inventory. Explain why you think this is the best match for the inventory items you have chosen.
• How would using these methods impact the balance sheet and the income statement? (Example: The cost of goods sold, ending inventory, profit, and asset values.)
• Imagine you are a business owner and you want to sell this type of inventory overseas. Would you use the same cost flow assumption? Why or why not?