Discuss the effect of absorption and marginal costing on inventory valuation and profit determination. Highlight both advantages and disadvantages of both methods

Define Inventory Turnover?  Explain what the results mean and provide an example.

Describe and compare the cost flow assumptions used to account for inventories.

What factors might impact on the management’s selection of an inventory cost flow assumption? In your answer you need to provide explanation on what factors could impact on a manager to choose FIFO, LIFO or the average cost method. In your answer you may want to refer to issues such as the impact of various cost flow assumptions on the income statement or the statement of financial position. List four factors in your answer