5) One reason to use a periodic inventory system is
A) The company likes to count the inventory a lot
B) The goods have a high unit value, such as diamondrings
C) The goods have a low unit value, such as thumb tacks
D) There is no reason, all companies should useperpetual
6) Using the First In, First Out (FIFO) cost flowassumption
A) Will help save income taxes when the cost of the goods isdecreasing
B) Will help save income taxes when the cost of the goods isincreasing
C) Is too much trouble
D) Will cause the company to go bankrupt
7) Using the Last in, First Out (LIFO) cost flowassumption
A) Will help save income taxes when the cost of the goods isdecreasing
B) Will help save income taxes when the cost of the goods isincreasing
C) Is too much trouble
D) Will cause the company to go bankrupt
8) When a company adopts a cost flow assumption such as FIFOor LIFO or Weighted Average Cost
A) The assumption is about the cost, not necessarily thephysical flow of the goods
B) It must be the same as the physical flow of the goods or itwill cause an earthquake
C) It does not matter what the goods cost
D) They all sing the company song
