Identify the statements below that are correct regarding the advantages of the four inventory methods using a perpetual inventory system.

Multiple select question.

FIFO assigns an amount to cost of goods sold on the income statement that approximates its current replacement cost.

LIFO mimics the actual flow of goods for most businesses.

FIFO assigns an amount to inventory on the balance sheet that approximates its current cost.

Weighted average tends to smooth out erratic changes in costs.