Which of the following statements about cost flow assumptions is true?

Group of answer choices

Companies can apply different cost flow assumptions each year depending on which approach reports the highest income.

Companies can apply different cost flow assumptions each year depending on which approach reports the most accurate inventory balance..

The cost flow assumption a company uses must match the physical flow of its inventory.

Using a cost flow assumption to measure inventory and cost of goods sold is a more efficient approach for certain types of firms.

When applying lower-of-cost-or-net realizable value to inventory,

Group of answer choices

the item-by-item approach results in an adjustment more often.

financial statement preparers must use the item-by-item approach.

the item-by-item approach results in an adjustment less often.

the aggregate approach results in an adjustment more often.