each method assumes a particular pattern for how costs flow through inventory. each of these four methods is acceptable whether or not the actual physical flow of goods follows the cost flow assumption.physical flow of goods depends on the type of product and the way it is stored. (perishable goods such as fresh fruit demand that a business attempt to sell them in a first-in,first-out physical flow. other products such as crude oil and minerals such as coal,gold,and decorative stone can be sold in a last -in ,first-out physical flow.) physical flow and cost flow need not be the same.