"FIFO, Average, IFRS, Periodic, Perpetual, I Don't Care Which One

Essay

"FIFO, Average, IFRS, periodic, perpetual, I don't care which one you use! Just pick the one that allows me to keep the bank happy by providing good stable cash flow and gives me something I can show them for collateral against my loan," exclaimed your exasperated client.He operates a small manufacturing business, and you are helping him select accounting policies after his first year in operation.
Required:
Address you client's concerns, and recommend accounting policies for inventory that will help him meet his objectives.It is not necessary to define the terms he used.