Write the letter of the method that is most applicable to each statement. Assume a period of rising costs.

A) Specific Identification

B) Average Costs

C) FIFO

D) LIFO

_____ 1. The method that assigns the most recent costs to ending inventory.

_____ 2. The method that will maximize income taxes.

______ 3. Minimizes Gross profit for the current period.

_____ 4. The method that relies on matching unit costs with the actual units

sold.

_____ 5. Uses the same unit cost in determining ending inventory and cost of

goods sold.

______ 6. Averages out costs during a period of cost instability.

______ 7. Is an assumption that will most closely parallel the physical flow

of food sold by a restaurant.

______ 8. Provides the most realistic measurement of the inventory in

relation to inventory replacement costs.

______ 9. Records the most recent purchased cost as cost of goods sold.

______ 10. Used by a company that sells high cost specialized items.