Under the Lower-Of-Cost-Or-Market Method, the Replacement Cost of an Inventory

question 13

Multiple Choice

Under the lower-of-cost-or-market method, the replacement cost of an inventory item would be used as the designated market value

• A) when it is below the net realizable value less the normal profit margin.
• B) when it is below the net realizable value and above the net realizable value less the normal profit margin.
• C) when it is above the net realizable value.
• D) regardless of net realizable value.