TAD,IncUses the Lower of Cost or Market Method to Value

question 44

Multiple Choice

TAD,Inc.uses the lower of cost or market method to value inventory.If the inventory value is replacement cost,which one of the following statements is true?

• A)Historical cost is less than replacement cost.
• B)Replacement cost is greater than net realizable value less a normal profit margin.
• C)Replacement cost is greater than historical cost.
• D)Net realizable value is greater than historical cost.

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Definitions:

Written Guidelines

Documents or instructions that provide specific advice or rules on how to perform tasks or handle situations, often used in professional and regulatory contexts.

Incoming Call

A telephone call that is being received by the call receiver rather than initiated by them.

Progress Report

A document or update that outlines the status of a project, highlighting accomplishments, challenges, and future steps.

Answering Time

The span of time it takes for a call or inquiry to be responded to, often used in customer service metrics.