PART I. True or False Questions 1. The choice of an inventory costing method has no significant impact on the financial statements. Answer 2. Of the three widely used inventory costing methods (FIFO, LIFO, and average cost), the LIFO method of costing inventory assumes costs are charged based on the most recent purchases first. Answer: 3. The two main types of inventory systems are the periodic system and the gross margin method. Answer 4. Under the LIFO inventory costing method, the most recent costs are assigned to ending inventory. Answer:- 5. Under a periodic inventory system, cost of goods available for sale is ending inventory plus purchases Answer:- 6. The average cost method will always yield results between FIFO and LIFO. Answer: 7. During periods of decreasing costs, the use of the LIFO method of costin inventory will result in a lower amount of net income than would result from the use of the FIFO method