Q$\mathrm{.}4\mathrm{.}3$ The following balances appear amongst others, in the trial balance of Grid Unlock

Traders for the year ended $29$ February $2024$:

From the information supplied, which inventory system is being used by Grid

Unlock Traders and provide a reason for your answer? $(2$ marks$)$

In which type of business environment would it be most likely that the type of

inventory system you have mentioned above, would be used? $(1$ mark$)$