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1. There are two different types of inventory systems--perpetual and periodic. What is the difference between the two in terms of how inventory is tracked and how it is recorded on the books.
2. In regards to inventory costing methods (LIFO, FIFO, Weighted Average), in most situations, the flow of goods would actually resemble FIFO. For example, a grocery store will push the oldest milk to the front of the shelf to try to sell it first. If that is the case, then why would a business choose to use LIFO instead to cost out its inventory? Is this allowed?
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