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identify the statements below that are correct regarding the advantages of the four inventory methods using a perpetual inventory system. (check all that apply.)
a. LIFO mimics the actual flow of goods for most businesses.
b. Weighted average tends to smooth out erratic changes in costs.
c. FIFO assigns an amount to inventory on the balance sheet that approximates its current cost.
d. FIFO assigns an amount to cost of goods sold on the income statement that approximates its current replacement cost.

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The statements that are correct regarding the  advantages of the four inventory methods when using the perpetual invenroty system are:

  • a. LIFO mimics the actual flow of goods for most businesses.
  • b. Weighted average tends to smooth out erratic changes in costs.

What are inventory methods?

Inventory methods refer to four ways that we can use to find out the value of inventory in a company. They include First In First Out or FIFO, Last In First Out or LIFO, Specific Identification, and Weighted average.

The Weighted average is done such that it allows for erratic changes in the cost of inventory to be smoothened out. This is because the price of inventory is treated as an average of the costs of inventory in the company over a period of time.

Last In First Out on the other hand, mimics the way that goods actually flow for most businesses which is that the last inventory are sold before the earlier ones.

Find out more on inventory methods at https://brainly.com/question/6640325

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