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 with FIFO.
D)Can only be used with specific identification.

Question

Quizplus · Accepted Answer

The lower-of-cost-or-market rule is used in conjunction with any inventory cost flow assumptions, meaning it can be used with any method including LIFO and FIFO. It requires inventory to be reported at its market value (net realizable value) if that value is lower than its cost.

The Lower-Of-Cost-Or-Market Rule