Indicate whether statement is true or false. If a fire destroys the merchandise inventory the gross profit method can be used to estimate the cost of merchandise destroyed A perpetual inventory system is an effective means of control over inventory The selection of an inventory costing method has significant impact on the financial statements When using the FIFO inventory costing method the most recent costs are assigned to the cost of goods sold specific identification inventory method should be used when the inventory consists of identical, low cost units that are purchased and sold frequently Select which inventory system is indicated by each sentence. Perpetual Periodic. This system can be costly and time consuming if not computerized. Average cost is rarely used with this system Under this system only revenue is recorded when sales are made. When using his system a physical inventory is necessary to determine Cost of Goods Sold