Multiple Choice and True/False Product cost are also referred to as: period costs. selling and administrative expenses. operating expenses. inventory costs. In an inflationary environment: a company's net income will be higher if it uses LIFO than if it uses FIFO. a company's cost of goods sold will be lower if it uses LIFO as opposed to FIFO. A company's net income will be the same regardless of whether LIFO or FIFO is used. the amount of inventory on the company's balance sheet will be lower if it uses LIFO as opposed to FIFO cost flow. AVCO Company borrowed $32,000 of cash from a local bank. Which of the following choices accurately reflects how this event would affect the company's financial statements? Choice A Choice B Choice C Choice D