1. Which of the following statements is correct regarding inventory costing systems?

a) Weighted average is the inventory costing method used by a majority of companies

b) It is preferred for companies to use a different inventory costing method each month.

c) Inventory costing assumptions do not need to match the actual way in which units are sold

d) The specific identification method is the only method permissible by GAAP

2. If costs are rising, which inventory costing method will result in the lowest net income for the period?

a) FIFO

b) LIFO

c) Weighted average

d) Specific identification