TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) The cost of an inventory item includes its invoice cost minus any discount, plus any added or incidental costs necessary to put it in a place and condition for sale. 2) The expense recognition (matching) principle is used to determine how much of the cost of goods available for sale is deducted from sales and how much is carried forward as inventory. 3) An advantage of the weighted average inventory method is that it tends to smooth out erratic changes in costs. 4) In a period of rising purchase costs, LIFO usually gives a lower taxable income and therefore, yields a tax advantage. 5) A properly designed internal control system is a key part of systems design, analysis, and performance. 6) The use of internal controls provides a guarantee against losses due to operating activities. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 7) Damaged and obsolete goods that can be sold: A) Are assigned a value of zero. B) Are included in inventory at their full cost. C) Are never counted as inventory. D) Are included in inventory at their net realizable value. auce E) Should be disposed of immediately. 8) Goods in transit are included in a purchaser's inventory: A) After the half-way point between the buyer and seller. B) At any time during transit. C) When the supplier is responsible for freight charges. D) If the goods are shipped FOB destination. E) If the goods are shipped FOB shipping point