Generally, valuing inventory above cost

Name: Generally, valuing inventory above cost
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Valuing inventory above cost is not allowed under conservatism and violates the lower of cost or market rule. However, it may be acceptable in selected industries and in certain circumstances, such as when the inventory is unique or has appreciating value. For example, luxury goods like designer bags or watches may be valued above cost due to their brand value and potential appreciation.

Generally, Valuing Inventory Above Cost