All of the following statements regarding the financial statement impact of inventory costing are true except.
A. When purchase prices are changing, the methods to assign inventory costs result in different amounts for cost of goods sold.
B. Cost of goods sold on the income statement approximates current cost when LIFO is used.
C. The weighted average method smooths out erratic changes in costs.
D. Inventory on the balance sheet approximates current cost when FIFO is used.
E. Selected costing method does not impact net income.
Answer: E
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