An inventory method which is designed to approximate inventory valuation at the lower of cost or market is
A) last-in, first-out.
B) first-in, first-out.
C) conventional retail method.
D) specific identification.

Question

Quizplus · Accepted Answer

The conventional retail method is specifically designed to approximate inventory valuation at the lower of cost or market by using predetermined markup percentages to estimate the cost of goods sold and ending inventory. The other inventory methods (last-in, first-out, first-in, first-out, and specific identification) do not necessarily focus on the lower of cost or market valuation.

An Inventory Method Which Is Designed to Approximate Inventory Valuation