Exhibit 8-1
Rival Inc. uses the lower of cost or market rule in valuing its inventory. Assume the company uses the LIFO method and that one unit has a ceiling constraint of $45.50. The following is other information concerning this unit:
-Refer to Exhibit 8-1. The floor constraint of this unit must be

Question

Exhibit 8-1
Rival Inc. uses the lower of cost or market rule in valuing its inventory. Assume the company uses the LIFO method and that one unit has a ceiling constraint of $45.50. The following is other information concerning this unit: 
-Refer to Exhibit 8-1. The floor constraint of this unit must be

Quizplus · Accepted Answer

The floor constraint is typically the minimum price or cost that must be met, and $38.00 is the lowest value among the given options, making it the likely floor constraint.

Exhibit 8-1 Rival Inc. Uses the Lower of Cost or Market Rule