Questions: Question 6 The Specific Identification Method is the most precise. True False Question 7 If the terms for a sale are FOB Shipping Point, the buyer pays the freight. True False Question 8 If the terms for a sale are FOB Shipping Point, the seller pays the freight. True False

Question 6: The answer is True. Question 7: The answer is True. Question 8: The answer is False.

• True: The Specific Identification Method is indeed the most precise inventory valuation method because it tracks the actual cost of each specific item sold and remaining in inventory. This method is often used for high-value or unique items, such as cars or jewelry, where each item can be distinctly identified.

• True: Under FOB (Free On Board) Shipping Point terms, the buyer is responsible for the freight costs. The ownership of the goods transfers from the seller to the buyer once the goods are shipped, meaning the buyer bears the transportation costs from the shipping point.

• False: As explained in Question 7, under FOB Shipping Point terms, the buyer, not the seller, is responsible for the freight costs. The seller's responsibility ends when the goods are shipped.