Which of the Following Statements Regarding the Application of the Lower

question 51

Multiple Choice

Which of the following statements regarding the application of the lower of cost or market method is true?

• A)Generally, historical cost is greater than replacement cost.
• B)When the lower of cost or market method is used, inventories are valued at their selling price.
• C)The lower of cost or market method is most commonly applied on a total inventory basis because it is a more conservative approach.
• D)The lower of cost or market method is an exception to the historical cost principle.

Understand the criteria for forming market segments including the need for differences among segments and similarities within segments.

Recognize the importance of linking customer needs to marketing actions in the process of segmenting and targeting markets.

Identify the reasons and benefits of market segmentation for businesses.

Distinguish between various bases of market segmentation including demographic, geographic, psychographic, and behavioral.

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