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The Lower-Of-Cost- And-Net-Realizable-Value Rule

Question 63

Multiple Choice

The lower-of-cost- and-net-realizable-value rule:


A) Is used in conjunction with the other inventory cost flow assumptions.
B) Cannot be used if Weighted Average Cost or FIFO is also used.
C) Can be used in conjunction with Weighted Average Cost but not FIFO.
D) Can only be used with the specific cost identification cost flow assumption.

Correct Answer:

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