The most conservative method of applying the lower of cost or market rule is to use the lower of total cost or total market by groups.

Name: The most conservative method of applying the lower of cost or market rule is to use the lower of total cost or total market by groups.
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Question

Quizplus · Accepted Answer

The most conservative method is to apply the lower of cost or market rule to individual items, not by groups, as it ensures that any potential losses are recognized more quickly.

The Most Conservative Method of Applying the Lower of Cost