1. The lower the value of the inventory, the the profit. 2. Determining ending inventory by LCM is done at the of the period. 3. A method of valuing inventory and determining the costs of goods sold by using the actual costs assigned to the units on hand and to those that are sold is known as 4. Under the specific identification method,. determine the ending inventory. costs and not valuations are used to 5. When it appears that inventory is obsolete or broken, it should be reported at its 6. The inventory valuation method that tax law prohibits using with LCM is 7. The most common method of inventory valuation under LCM is based on the price. 8. The most accurate determination of inventory is by the method.