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8. Of the following companies, which one would not likely employ the specific identification method for inventory costing? A. Music store specializing in organ sales b. Farm implement dealership c. Antique shop d. Hardware store 9. Which inventory costing method should a gasoline retailer use? A. Average cost b. LIFO c. FIFO d. Either LIFO or FIFO. 10. In periods of rising prices, which is an advantage of using the LIFO inventory costing method? A. Ending inventory will include latest (most recent) costs and thus be more realistic. B. Cost of goods sold will include latest (most recent) costs and thus will be more realistic. C. Net income will be the highest and thus reflect the prosperity of the company. D. Phantom profits are reported.
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