Which of the following is not true?
a. Acquisition cost for a merchandising firm includes the costs incurred to purchase and transport the inventory prior to sale.
b. Acquisition cost for a manufacturing firm includes the direct material, direct labor, and manufacturing overhead cost to produce the inventory.
c. If the market values of inventory items decline below acquisition cost prior to sale, firms must reduce their balance sheet carrying values using the lower of cost or market method.
d. U.S. GAAP uses a combination of replacement cost and net realizable values to measure market value.
e. U.S. GAAP and IFRS permits firms to remeasure inventories upward when market value exceeds acquisition cost.
E
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