Answer in True or False

1) The objective of inventory tracking is to allocate the cost of goods available for sale between the cost of units sold and the cost of unsold inventory.

2)The average cost method generates gross profit, net income, and income tax amounts that fall between the extremes of FIFO and LIFO.

3) To save time when performing physical inventory counts, outside companies are rarely used because they are not familiar with the inventory.

4)Annie's Antique Shoppe would most likely use the LIFO method of accounting for inventory.