Question: Which statement is correct? 1. A company must apply the FIFO cost formula for gases and liquids. 2. A company can apply any cost formula

Which statement is correct?

1. A company must apply the FIFO cost formula for gases and liquids.

2. A company can apply any cost formula that maximises profits.

3. A company must apply the FIFO cost formula for goods that are stackable like steel mats.

4. A company must apply the cost formula that is closest to the consumption of goods pattern, like FIFO for perishable goods.

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