The major criticism of the lower of cost or market rule for valuation of inventory is that
A) holding losses are recognized, but holding gains are not.
B) holding gains are recognized, but holding losses are not.
C) the total difference between selling price and cost is usually recognized in the period of the sale.
D) the conservatism principle is violated because of the use of the floor constraint.
A
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Answer the following statement true (T) or false (F)
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