Which of the following statements best describes how management selects an inventory valuation method?
A.
If a company generally sells its oldest inventory first, it must use the FIFO inventory valuation method.
B.
If a company generally sells its oldest inventory first, it must use the LIFO inventory valuation method.
C.
If a company generally sells its newest inventory first, it must use the FIFO inventory valuation method.
D.
If a company sometimes sells its newest inventory and sometimes sells its oldest inventory, then it must use the weighted average inventory valuation method.
E.
A company may choose any inventory valuation method even if it is contradictory to the physical flow of inventory.