In no case can "market" in the lower of cost and market rule be more than
A)estimated selling price in the ordinary course of business.
B)estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal.
C)estimated selling price in the ordinary course of business less reasonably predictable
D)estimated selling price in the ordinary course of business less reasonably predictable.

Question

Quizplus · Accepted Answer

The lower of cost and market rule stipulates that inventory should be valued at the lower of its cost or market value. The market value is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal. Therefore, option B is the correct choice as it is the highest amount that market can be valued at under this rule. Options A, C, and D all overstate the market value and are incorrect.

In No Case Can "Market" in the Lower of Cost