Which of the following is not an acceptable approach in applying the lower-of-cost-or-market method to inventory?
A) Inventory location.
B) Categories of inventory items.
C) Individual item.
D) Total of the inventory.

Question

Quizplus · Accepted Answer

Inventory location is not a relevant factor in applying the lower-of-cost-or-market method to inventory. The method should be applied to each individual item, category of inventory items, or the total inventory value, depending on which approach provides the most appropriate result.

Which of the Following Is Not an Acceptable Approach in Applying