6. Use of the retail method requires taking a physical count of the inventory. A True B. False 7. The lower-of-cost-or-market method of determining the value of ending inventory can be applied on an item by item, by major classification of inventory or by total inventory A. True B. False 8. If ending inventory for the year is understated, net income for the year is overstated. A. True B. False 9. During periods of increasing costs, the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method. A True B. False 10. Inventory controls start when the merchandise is shelved in the store area. A True B, False