Response to the following questions:
1. What criteria should a company use to decide between alternative inventory cost flow assumptions? Evaluate the relevance of the LIFO cost flow assumption. Why is LIFO not allowed under international accounting standards?
2. During a period of rising costs, indicate whether the LIFO cost flow assumption results in a larger or a smaller net income as compared to the FIFO cost flow assumption and explain why. Explain how a company's net income would compare during a period of falling costs.
Support your answer using a minimum of two professional or academic sources.