ACCT 3201 - Chapter 8 Muse for every 1. A disadvantage of LIFO is that it does not match more recent costs against current revenues as well as FIFO. a. True b. False a. c. 2. Which of the following is a characteristic of a perpetual inventory system? Inventory purchases are debited to a Purchases account. b. Inventory records are not kept for every item. Cost of goods sold is recorded with each sale. d. Cost of goods sold is determined as the amount of purchases less the change in inventory 3. I Which of the following items should be included in a company's inventory at the balance sheet date? a. Goods in transit which were purchased f.o.b. destination. b. Goods received from another company for sale on consignment. c. Goods sold to a customer which are being held for the customer to call for at his or her convenience. d. None of these answer choices are correct. 4. Which of the following is a period cost, and therefore not included as part of inventory cost?? a. Direct costs. b. Freight in c. Production costs. d. Selling costs. Te Bi ) hp