1) Refer to the extracts of the annual report of Woolworths Limited in this book's appendix. All questions relate to the consolidated accounts.
1. Would you expect Woolworths Limited to use a perpetual or periodic method of inventory valuation?
2. Does the company apply the lower of cost and net realisable value rule? Where is this noted?
3. What cost flow assumptions are used to value inventory?

Data from appendix

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WOOLWORTHS LIMITED SUSTAINABILITY METRICS AND PROGRESS - PROGRESS AGAINST OBJECTIVES 1 Reduce carbon emissions from our buildings by 40% by 2015 (compared to projected growth levels) Energy efficient and low carbon technology delivered an 18.7% reduction in carbon emissions, compared to original projected growth levels for 2014 Sourcing electricity from renewable sources delivered a further 14.2% reduction in emissions 2 Achieve a 25% reduction in carbon emissions per square metre for new supermarkets New supermarkets built in 2014 have carbon emissions per square metre which are, on average, 25.1% lower than baseline stores 3 Zero food waste to landfill by 2015 (where receiving facilities are available] The volume of recoverable food waste in our waste stream reduced by 20%, from 77% to 57% Woolworths has diverted an estimated 40,000 tonnes of food waste from landfill and we continue to identify new solutions for food waste 4 Reduce amount of recyclable cardboard in the waste stream to less that 1% by weight Weight of recyclable cardboard in supermarkets rubbish bins was 0.96%