Why Are Inventories Reported at the Lower of Cost and Market

question 31

Multiple Choice

Why are inventories reported at the lower of cost and market?

• A)Neutrality.
• B)Matching.
• C)Conservatism (prudence).
• D)Comparability.

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Definitions:

Structural Properties

Structural properties are the attributes and characteristics that determine the shape, configuration, and strength of an organizational or physical structure.

Opportunities

Circumstances that present prospects for advancement, growth, or beneficial action in personal, professional, or organizational contexts.

Job Scope

The range of responsibilities, duties, and tasks that a particular job entails, defining the breadth and depth of a position.

Low Job Scope

Refers to jobs that have limited duties and responsibilities, offering little variety and minimal opportunity for the use of one's skills and abilities.