Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Taking a physical count of inventory a. is not necessary when a periodic inventory system is used b. is a detective control c. has no internal control relevance d. is not necessary when a perpetual inventory system is used 2. When merchandise sold is assumed to be in the order in which the expenditures were made, the inventory method is called a. first-in, last-out b. last-in, first-out e. first-in, first-out d. average cost