A valid reason for choosing a periodic inventory system rather than a perpetual inventory system is to Detect problems such as theft, shrinkage, and obsolescence. Reduce the cost of record keeping. Determine a more precise figure for cost of sales. Have more current information on profit trends. (Refers to Fact Pattern 1) The cost of the goods sold on May 30 under the LIFO method is $94, 600 $94, 080 $86, 400 $91, 200 Management of a new retail sales company has asked for your advice in the selection of an appropriate inventory costing method. The business carries 20 lines of homogeneous products, the turnover rate is expected to be high, purchase prices are expected to increase continuously, and inventory quantities on hand at the end of each accounting period are expected to remain constant or increase. Management seeks an inventory cost method that will defer holding gains (or losses) arising from specific price changes. Which of the following methods best meets this objective? FIFO. Weighted-average with a periodic system. Weighted-average with a perpetual system. LIFO. Which of the following statements are correct when a company applying the lower-of cost-of-market method reports its inventory at replacement cost? The original cost is less than replacement cost. The net realizable value is greater than replacement cost. I only. II only. Both I and II. Neither I nor II. Inventory is measured at lower of cost or net realizable value (NRV) under which cost flow methods