1. In order to apply the matching concept, inventory costing methods, once selected, cannot be changed to an alternative method.

True/False?

2.The use of the FIFO method of inventory valuation

• results in a highest reported net income in a time of falling prices.

• results in a matching of current inventory costs against sales revenue.

• results in the most current costs in ending inventory.

• results in a lowest reported net income in a time of rising prices.