If a Company Values Inventory at the Lower of Cost

question 198

Multiple Choice

If a company values inventory at the lower of cost or market, which of the following is the value of merchandise inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole. $$\begin{array} { | l | c | c | c | } \hline { \text { Item } } & \text { Inventory Quantity } & \text { Unit Cost Price } & \text { Unit Market Price } \\\hline \text { Product C } & 420 & \$ 6 & \$ 5 \\\hline \text { Froduct D } & 370 & 12 & 14 \\\hline\end{array}$$

• A) $6,960
• B) $7,700
• C) $6,540
• D) $7,280

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Definitions:

Transcend Self-Interest

The act of prioritizing the needs, goals, or well-being of others or the collective over personal gain.

Organization

An entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.

Charisma

A personal quality that gives an individual influence or authority over large numbers of people.

Chief Executives

Top-level managers who are responsible for the overall direction and success of an organization.