1. Many companies do not bother to allocate the cost of freight, insurance, and handling to individual inventory units for financial accounting purposes.

True or False

2.The weighted-average method's advantages include the company's ability to use this method with:

a.

no concern that income will be manipulated.

b

little concern for actual prices paid for purchases.

c

basically identical units.

d

assurance that income taxes will be minimized.

3.

Net income cannot be manipulated by making purchases at the end of the year when using the first-in, first-out inventory costing method.

True or False