Determine whether the following statements are correct and why:

1. The historical cost of inventory is $60000at year end. When it is converted to constant end of year dollars by multiplying by 110/100 to get $66000, the $66000 is still the historical cost of the inventory
2. Last month the quantity variance was determined to be $12000 favourable, and this month it is $24000 favourable: therefore, the efficient use of materials has been doubled
3. On the basis of savings income tax, Company X ascertained that the diminishing- balance method for depreciation is better than the straight line method. By using the diminishing balance method rather than the straight line method, company X saved $10000 in income tax this year, therefore, the former method is 10000 times better than the latter
4. On the basis of the amount of assets, we can say that Company X is twice as large as Company Y is twice as large as Company Y, because its total assets amount to $1,000,000 compared with $500,000 for Y