9 pints eBook Ask References QS 5-18 Contrasting inventory costing methods LO A1 Identify the inventory costing method best described by each of the following separate statements. Assume a period of increasing costs. 1. Tends to smooth out the erratic changes in costs. Inventory on the balance sheet approximates its current cost. Precisely matches the costs of items with the revenues they generate. 4. Cost of goods sold approximates its current cost. 5. Better matches current costs with revenues. 2. 3.