Identify the inventory costing method (SI, FIFO, LIFO, or WA) best described by each of the following separate statements. Assume a period of increasing costs. 1. Precisely matches the costs of items with the revenues they generate. 2. Better matches current costs with revenues. 3. Yields the highest net income. 4. Tends to smooth out the erratic changes in costs. 5. Inventory on the balance sheet approximates its current cost.

H7. For the same transactions, why does the weighted-average cost method provide different value for ending inventory and COGS depending on whether the periodic or perpetual inventory system is used?   Select one: a. Perpetual inventory calculates and assigns costs as items are sold, while periodic inventory calculates and assigns costs at the end of the period.   b. Perpetual inventory calculates and assigns costs at the end of the period, while periodic inventory calculates and assigns costs as items are sold.   c. Perpetual inventory counts all the purchases for the month first before calculating the average cost, while periodic calculates the average cost after every transaction.   d. Perpetual inventory and periodic inventory will not provide different values using  Explain also wrong options and explain with details

Which cost flow assumption generally results in the highest reported amount for ending inventory when inventory costs are rising? Explain.

During periods of increasing costs, the use of the FIF0 method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method. True False

In order to get the lowest profits possible in periods of rising inventory costs, the company should use which of the following inventory costing methods? Group of answer choices Average cost Specific identification FIFO LIFO