Which of the following statements regarding inventory accounting is false?

Multiple Choice

To get the most recent prices into cost of goods sold, a company using LIFO will use the periodic inventory system, rather than a perpetual system, to compute its ending inventory and cost of goods sold.

When purchases and sales occur continuously, the costs incurred most recently will be virtually identical to current replacement cost so LIFO provides a good match between current costs and current revenues.

Under either FIFO or LIFO it is not possible to simultaneously reflect both the balance sheet inventory and cost of goods sold at current cost.

By charging the oldest costs to the income statement, LIFO automatically includes in income any holding gains on the units that are sold.