Which of the Following Is a Correct Statement About the Lower-Of-Cost-Or

question 52

Multiple Choice

Which of the following is a correct statement about the lower-of-cost-or market rule?

• A) Under GAAP, once inventory has been written down to market value, the write-downs can be reversed in future periods.
• B) Under GAAP, the lower-of-cost-or-market rule is optional.
• C) Under IFRS, inventory can exceed its original cost.
• D) Under IFRS, "market" is defined as "net realizable value."

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Definitions:

Technological Advancement

The progress or development in technology, leading to new inventions, improvements, and the creation of novel products or processes.

Organizational Change

The process by which organizations transform their structures, strategies, policies, processes, or culture to adapt to internal and external pressures.

Sociotechnical System

An approach to complex organizational work design that recognizes the interaction between people and technology in workplaces.

Task-Technology

The relationship between the tools and systems used in work processes and the tasks they are designed to support or enhance.