Accounting year 11 question help

[Maz]

hi
i was wandering if anyone new what i could right for these questions:
1. State the two important requirements when choosing a method for assigning cost of inventories?
2. In reality, the unit cost (purchase price) of inventory will change over time. List four factors that contribute to increase/decrease in cost price
Thankyou in advance

[The Usual Student]

hi
i was wandering if anyone new what i could right for these questions:
1. State the two important requirements when choosing a method for assigning cost of inventories?
2. In reality, the unit cost (purchase price) of inventory will change over time. List four factors that contribute to increase/decrease in cost price
Thankyou in advance

I searched the textbook and haven't found anything on question 1 :p
But I guess u could say  ( assuming methods = CVPA and Mark up ect )
1) that all costs are well defined
2) that the owner knows what return they want to achieve on a product
Those two are requirement for mark ups but idk what requirements INFLUENCE the choice of a certain method of price setting technique. You could also state the obvious and say the method should be able to account for the MInimuim desired profit and the COGS but I am not too sure.

question 2
I am just going to list things that influence cost price in general
1) Market reaction eg demand and supply
2) Competitor's pricing
3) increased / decreased Cost of goods sold
4) increased / decreased fixed costs eg Rent

[Maz]

thankyou so much for your help