Which of the Following Principles Are Reflected in the Lower-Of-Cost-Or-Market

question 152

Multiple Choice

Which of the following principles are reflected in the lower-of-cost-or-market rule?

• A) Accounting conservatism
• B) Materiality concept
• C) Disclosure principle
• D) Consistency principle

---

Definitions:

Sequence of Decisions

A series of choices made over time, where each choice might be influenced by past decisions, expected to lead to a desired outcome.

Decision Tree

is a graphical tool used in decision-making, which represents different choices and their possible outcomes, including chance event outcomes, resource costs, and utility.

EMV

Stands for EuroPay, MasterCard, and Visa, a standard for the interoperability of chip cards and chip-card capable payment terminals and ATMs, for authenticating credit and debit card transactions.

Maximin Criterion

A decision-making rule used for minimizing the worst-case scenario loss.