Using the Lower-Of-Cost-Or-Market Rules to Value Ending Inventory Complies with the Ongoing

question 99

True/False

Using the lower-of-cost-or-market rules to value ending inventory complies with the ongoing principles of accounting.

---

Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit; calculated as a percentage of the cost.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Market Value

Market value is the current price at which an asset or service can be bought or sold.