Why Is the Lower-Of-Cost-Or-Market Rule Necessary in Accounting

question 81

Essay

Why is the lower-of-cost-or-market rule necessary in accounting?

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Definitions:

Nonprobability Sampling

A sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.

Lotteries

Games of chance where winners are selected by drawing lots, often used as a means of raising funds.

Stratified Random Sampling

A sampling technique that divides the population into distinct subgroups, or strata, and randomly selects samples from each stratum.

Standard Error

A measure of the variability or dispersion of a sample statistic, such as the sample mean, from the population mean.