12. Use of the FIFO cost flow assumption means that A. Ending inventory items are the ones most recently purchased B. Goods are removed from inventory at their average cost C. The periodic costing system is used D. The beginning inventory contains the oldest costs E. All of these are correct answers. 13. The consistency principle A. Requires a company to use the same accounting methods period after period B. Requires a company to use one cost flow assumption exclusively C. Allows a company to change its cost flow assumption period after period in order to maximize net income D. Is also called the matching principle E. Allows a company to change its cost flow assumption period after period in order to minimize income taxes 14. During a period of steadily falling prices, which inventory cost flow assumption results in reporting the lowest net income? A. Specific identification B. Average cost C. Weighted-average D. FIFO E. Retall method 15. During a period of steadily rising prices, which inventory cost flow assumption results in reporting the highest inventory value? A. Specific identification B. Average cost C. Moving weighted average D. HiFO C. Any of the above 16. DVDs usually sell for $14 per unit, and have a profit margin of 25%. However, the expected selling price has tallen to $7 per unit. The Movle Company's current inventory includes 200 units purchased at $10 per unit. Calculate the value of the imventory at the lower of cost and net realizable value. A. $1,350 B. 51,400 C. 51,500 D. 51,800 E. $2,000