The cost of an inventory item includes its invoice cost minus any discount, plus any other costs, such as$,$

shipping, storage, import duties, and insurance.

$()$ true

$()$ false

Other costs for acquiring merchandise inventory, such as import duties, shipping, storage, and insurance,

should not be added to the cost of inventory.

$()$ true

$()$ false

Companies never take a physical count of inventory, but rather solely rely on inventory records to determine

the inventory value.

$($o$)$ true

$()$ false

The weighted average method matches the costs of inventory items with the revenue generated by the sale

of the inventory items.

$($o$)$ true

$()$ false

The choice of costing method will impact both the balance sheet and the income statement.

$()$ true

$()$ false

Understating ending inventory understates both current and total assets.

$()$ true

$()$ false

A high inventory turnover ratio is preferable if inventory is adequate to meet demand.

$()$ true

$()$ false

The inventory turnover ratio is computed by dividing cost of goods sold by average inventory.

$()$ true

$()$ false

The days' sales in inventory ratio is computed by dividing ending inventory by cost of goods sold and

multiplying the result by $365.$

$()$ true

$($c$)$ false