Which of the Following Statements Does Not Accurately Describe the Effects

question 40

Multiple Choice

Which of the following statements does not accurately describe the effects of a write-down of inventory on December 31, 2014 using the lower of cost or market (LCM) valuation method?

• A) The 2013 gross profit decreases.
• B) The 2014 cost of goods sold is effectively decreased if the inventory was sold during 2014.
• C)The 2013 ending inventory is decreased.
• D)The 2014 gross profit is not affected when the inventory was sold during 2014.

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Definitions:

Larger Teams

Teams comprised of a significantly larger number of members, which can impact dynamics such as communication, coordination, and decision-making.

Skill-based Pay

A compensation system where an employee’s pay is based on the skills, capabilities, and knowledge they bring to a job, rather than the position they hold.

Job Skills

The expertise, abilities, and competencies that enable an individual to perform specific tasks and functions effectively in their professional role.

Training Costs

Expenses associated with developing skills and knowledge of employees or individuals through structured learning experiences.