Which of the following statements about the lower of cost or market rule/net realizable value is not correct?
A. The lower of cost or market/net realizable value (LCM/NRV) rule results in reporting inventory conservatively, at an amount that does not exceed its actual value.
B. The lower of cost or market/net realizable value rule sometimes causes the book value of inventory to be written down below cost, but will never cause the book value of inventory to be increased above cost.
C. The amount of inventory write-down is an expense which most companies report as cost of goods sold.
D. Lower of cost or market is an inventory cost method used to determine cost of goods sold and ending inventory.
Answer: D
You might also like to view...
In general, people generally prefer ______ serpentine, ______ channel queue.
a. single; single b. single; multi c. multi; single d. multi; multi
Demographic segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product
Indicate whether the statement is true or false
The phenomenon called ______ often occurs when there is a concentration of critical resources in a particular region.
A. clustering B. grouping C. categorization D. classification
The constraint x1 - x2 = 0 implies that if project 1 is selected, project 2 cannot be
Indicate whether the statement is true or false