8) One difference between periodic and perpetual inventory systems is: A) Cost of goods sold is not recorded under a periodic system until the end of the period. B) Cost of goods sold is always significantly higher under a perpetual system. C) Cost of goods sold is always significantly higher under a periodic system. D) Cost of goods sold is not recorded under a perpetual system until the end of the period. 9) Ending inventory is equal to the cost of items on hand plus: A) Purchases in transit f.o.b. destination. B) Items in transit sold f.o.b. shipping point. C) Items in transit sold fo.b. destination. D) None of these answer choices is corect. 10) Purchases equal the invoice amount: A) Plus freight-in, less purchase discounts. B) Plus discounts, less purchase returns. C) Less purchase returns, plus purchase allowances. D) Plus freight-in, plus discounts lost. 11) Inventory does not include: A) Materials used in the production of goods to be sold. B) Assets intended to be sold in the normal course of business. C) Assets currently in production for normal sales. D) The cost of office equipment. 12) For companies using FIFO or average cost, inventory is valued at: A) Cost. B) Lower of cost or net realizable value. C) Net realizable value. D) Replacement cost. 13) For companies using LIFO, inventory is valued at: A) Cost. C)Lower of cost or market. B) Net realizable value. D) Replacement cost. 14) In applying LCM, market cannot be: A) Less than the normal profit margin. C) Greater than the normal profit. B) Greater than net realizable value. D) Less than net realizable value