The lower-of-cost-or-market rule may be applied by comparing the market value of the inventory to the cost of the inventory based on any of the following except:
A)Individual inventory items.
B)Major inventory categories.
C)The entire inventory.
D)Industry inventory standards.

Question

Quizplus · Accepted Answer

The lower-of-cost-or-market rule does not compare the cost of inventory based on industry inventory standards. It only compares the market value of the inventory to the cost of the inventory based on individual inventory items, major inventory categories, or the entire inventory.

The Lower-Of-Cost-Or-Market Rule May Be Applied by Comparing the Market