Cheryl believes that companies report cost of goods sold and ending inventory based on actual units sold

Question:

Cheryl believes that companies report cost of goods sold and based on actual units sold and not sold. Her accounting instructor explains that most companies account for cost of goods sold and based on assumed units sold and not sold. Help her understand why companies are allowed to do this.
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...