ACC 304 All Assignments ACC 304 All Assignments | Page 112

29. Lower-of-cost-or-market as it applies to inventory is best
described as the
a. drop of future utility below its original cost.
b. method of determining cost of goods sold.
c. assumption to determine inventory flow.
d. change in inventory value to market value.
30. The floor to be used in applying the lower-of-cost-or-market
method to inventory is determined as the
a. net realizable value.
b. net realizable value less normal profit margin.
c. replacement cost.