The lower-of-cost-or-market rule:
A)Is used in conjunction with any inventory cost flow assumptions.
B)Cannot be used if LIFO or FIFO is also used.
C)Can be used in conjunction with LIFO but not FIFO.
D)Can only be used with the specific identification.

Question

Quizplus · Accepted Answer

The lower-of-cost-or-market rule can be used in conjunction with any inventory cost flow assumptions, such as LIFO or FIFO. It requires that if the market value of an item in inventory falls below its cost, the inventory should be written down to the lower value.

The Lower-Of-Cost-Or-Market Rule