The lettered items in the list below represent inventory costing methods. Identify by letter the method that each of the following statements best describes.

\section*{LO 5 Characteristics}

a. Specific identification

b. Weighted-average-cost

c. First-in, first-out (FIFO)

d. Last-in, first-out (LIFO)

1. Matches recent costs with recent revenues 2. Assumes that each item of inventory is identifiable 3. Results in most realistic balance sheet valuation 4. Results in lowest net profit in periods of deflation 5. Results in lowest net profit in periods of inflation 6. Matches oldest costs with recent revenues 7. Results in highest net profit in periods of inflation 8. Results in highest net profit in periods of deflation 9. Tends to level out the effects of inflation 10. Is unpredictable as to the effects of inflation