the following "True or False" questions using the dropdowns provided. 1. In an inflationary environment, cost of goods sold using the average cost method will be less than cost of goods sold when the LIFO method is used (assuming no LIFO layers are liquidated). [ Select ] 2. Pearson textbooks printed 20,000 textbooks for marketing classes around the country this year. When school starts, Pearson realizes that not as many students are signing up for marketing classes, because everyone would rather take accounting. Perason applies the lower of cost or market rule to determine the value of the marketing textbook inventory. True or false: as a result of applying lower of cost or market, gross profit will decrease. [ Select ] 3. During periods of decreasing unit costs, use of the FIFO inventory method results in lower gross profit than would use of the LIFO method, as long as the business purchases more inventory than customers demand. [ Select ] 4. The LIFO reserve can never be negative, as the higher inventory value is always subtracted from the lower inventory value. [ Select ]