ACC 304 All Assignments ACC 304 All Assignments | Page 115

34. Which method(s) may be used to record a loss due to a price
decline in the value of inventory?
a. Cost-of-goods-sold.
b. Sales method.
c. Loss method
d. Both a and c.
35. Why might inventory be reported at sales prices (net realizable
value or market price) rather than cost?
a. When there is a controlled market with a quoted price applicable to
all quantities and when there are no significant costs of disposal.
b. When there are no significant costs of disposal.