ACC 304 All Assignments ACC 304 All Assignments | Page 108

23. When valuing raw materials inventory at lower-of-cost-or-
market, what is the meaning of the term "market"?
a. Net realizable value
b. Net realizable value less a normal profit margin
c. Current replacement cost
d. Discounted present value
24. In no case can "market" in the lower-of-cost-or-market rule be
more than
a. estimated selling price in the ordinary course of business.
b. estimated selling price in the ordinary course of business less
reasonably predictable costs of completion and disposal.