Multiple Select Question

Select all that apply

There are advantages to using each of the four inventory costing methods. Identify the statements

below that are correct regarding these advantages. $($Check all that apply.$)$

FIFO assigns an amount to inventory on the balance sheet that approximates its cur$-$

rent cost.

FIFO assigns an amount to cost of goods sold on the income statement that approxi$-$

mates its current replacement cost.

LIFO mimics the actual flow of goods for most businesses.

Weighted average tends to smooth out erratic changes in costs.

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