Which of the following statements is correct? Multiple Choice The choice of an inventory costing method is dependent upon the actual physical flow of the goods in inventory. LIFO should be used during a period of increasing unit costs when the objective is to maximize the ending inventory value on the balance sheet. FIFO should be used during a period of decreasing unit costs when the objective is to maximize the gross profit reported on the income statement. The average cost method will result in an ending inventory balance which is somewhere between LIFO and FIFO when inventory unit costs are changing.