ACC 304 All Assignments ACC 304 All Assignments | Page 107

b. It usually understates assets.
c. It can increase future income.
d. All of these.
22. The primary basis of accounting for inventories is cost. A
departure from the cost basis of pricing the inventory is required where
there is evidence that when the goods are sold in the ordinary course of
business their
a. selling price will be less than their replacement cost.
b. replacement cost will be more than their net realizable value.
c. cost will be less than their replacement cost.
d. future utility will be less than their cost.