The lower-of-cost-or-market inventory procedure would be expected to result in the lowest inventory valuation when applied to
A) individual inventory items.
B) groups of similar inventory items.
C) total inventory.
D) none of these.

Question

Quizplus · Accepted Answer

The lower-of-cost-or-market inventory procedure compares the cost of each individual inventory item with its market value and records the lower value as the inventory valuation. This results in the lowest inventory valuation for each individual item rather than for groups or the total inventory as a whole.

The Lower-Of-Cost-Or-Market Inventory Procedure Would Be Expected to Result in the Lowest