Question five (10 marks): 4(4-1), 3(3-2), 5(5-4) 1- Write a memo to your president explaining the benefits of variable and fixed income statement and direct and indirect costing income statement. 2- In your opinion, is latest in first out method (LIFO) popular at times of rising prices ? clarify the reasons of your answer. 3- In your opinion, does average cost method (AC) minimize the influence of wide fluctuations in purchase price of materials ? state the reasons behind your answer 4- Explain the effects of production and sales on net income under the two costing methods approaches (direct and indirect costing method , variable and fixed costing method ). 5- In your opinion, does the first in first out method (FIFO) reflect the actual physical flow of goods? State the reasons behind your answer. 6- Which costing method will produce the higher net income, direct and indirect costing method or variable and fixed costing method ? verify your