Knowledge Check 01 Complete each sentence by selecting the correct term using the drop-down list. During a period of regularly rising purchase costs, this method yields the highest reported cost of goods sold amount on the income statement. FIFO LIFO Weighted Average Knowledge Check 01 An advantage of the _ _costing method is that the cost of goods sold approximates its current cost. W LIFO FIFO Weighted average Specific identification Knowledge Check 01 Under the conformity rule, companies who use the financial statements method for tax reporting, are required by the IRS to also use it in their LIFO FIFO Weighted average Specific identification