Which one of the following statements regarding the application of the lower of cost or market method is true?

a. Generally, market value is greater than replacement cost.
b. When the lower of cost or market method is used, inventories are valued at selling price.
c. The lower of cost or market method is most commonly applied on a total inventory basis because it is a more conservative approach.
d. The lower of cost or market method is an exception to the historical cost principle.


d

Business

You might also like to view...

While some countries have laws regulating marketing activities, some of those countries have only a few laws that are loosely enforced

Indicate whether the statement is true or false

Business

Leadership traits are developed by

a. reading books. b. studying emotional intelligence. c. introspection and observation. d. all of these choices.

Business

Markets that transfer funds from savers to borrowers are referred to as _____.

A. treasury markets B. monopolistic markets C. financial markets D. mutual markets

Business

Determining whether discrimination has occurred regarding recruitment requires an analysis of:

a. the relevant labor market b. the overall labor force c. the national labor force d. the international labor market

Business