An Adjustment to Ending Inventory Under the Lower of Cost

question 74

Multiple Choice

An adjustment to ending inventory under the lower of cost or market (LCM) rule would be most likely to be recorded by a company that sells:

• A)Plastic storage containers.
• B)Paper clips.
• C)Body lotion.
• D)Designer clothes.

---

Definitions:

Express Ratification

Formal approval or confirmation of an act or agreement, usually explicitly and often in writing, making it officially valid.

Misrepresentation

The act of giving a false or misleading statement about a material fact, often leading to a breach of contract.

Disaffirm

To legally reject or void a previously agreed upon contract or agreement, especially by minors.

Tort

A civil wrong that causes harm or loss, leading to legal liability for the person who commits the tortious act.