12. The selection of an appropriate inventory cost flow assumption for a company is made by a. the external auditors. b. the SEC. c. the internal auditors. d. management. 13. Which one of the following inventory methods is often impractical to use? a. Specific identification b. LIFO c. FIFO d. Average cost 14. The cost of goods available for sale is allocated to the cost of goods sold and the a. beginning inventory. b. ending inventory. c. cost of goods purchased. d. gross profit. 15. Companies adopt different cost flow methods for each of the following reasons except a. balance sheet effects. b. cost effects. c. income statements effects. d. tax effects. 16. The managers of Constantine Company receive performance bonuses based on the net income of the firm. Which inventory costing method are they likely to favor in periods of declining prices? a. LIFO b. Average Cost c. FIFO d. Physical inventory method 17. The accountant at Cedric Company has determined that income before income taxes amounted to $7,000 using the FIFO costing assumption. If the income tax rate is 30% and the amount of income taxes paid would be $315 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption? a. $5,950 b. $7,000 c. $7,315 d. $8,050 18. Under the lower-of-cost-or-net realizable value basis in valuing inventory, net realizable value is the a. net amount a company expects to receive from the sale of inventory. b. selling price. c. historical cost plus 10%. d. selling price less markup.