QS 5-19 (Algo) Contrasting inventory costing methods LO A1 Identify the inventory costing method (SI, FIFO, LIFO, or WA) best described by each of the following separate statements. Assume a period of increasing costs. Specific identification 1. Precisely matches the costs of items with the revenues they generate. 2. Mimics the actual flow of inventory for most businesses. 3. Has the lowest tax expense because of reporting the lowest net income. 4. Tends to smooth out the erratic changes in costs. 5. Results in the highest cost of goods sold. Weighted average