1. How can the specific identification method allow management to manipulate income? 2. Historical-based costing methods are sometimes criticized for leading to inventory profits. In a period of...

1. How can the specific identification method allow management to manipulate income?

2. Historical-based costing methods are sometimes criticized for leading to inventory profits. In a period of rising prices, which inventory costing method will lead to the most ‘‘inventory profit’’? Explain your answer.