In order to ensure that the inventory values presented on the statement of financial position at year end reflect the true economic benefits of the inventory, the company may need to have an inventory fire sale. use a perpetual inventory system. use a JIT system. O prepare an inventory writedown. Question 6 (1 point) The longer the inventory remains unsold, the higher the risk of spoilage. damage. obsolescence. all of the above. Question 7 (1 point) Which of the following statements about the weighted average cost formula is true? If prices are rising, companies prefer it because it lowers their tax liability. It is the most popular method in Canada. In times of rising prices, weighted average will produce a higher net income than FIFO. In time of rising prices, weighted average produces an inventory cost per unit that is higher than the cost per unit of cost of goods sold. Question 8 (1 point) Which of the following would be most likely to use the specific identification method? shoe store car dealership grocery store bookstore