In Applying the Lower of Cost or Market Method to Inventory

question 24

Multiple Choice

In applying the lower of cost or market method to inventory valuation,market is defined as:

• A)Historical cost.
• B)Current replacement cost.
• C)Current sales price.
• D)FIFO.
• E)LIFO.

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Definitions:

Establishment Of Responsibility

An accounting principle that ensures specific duties are assigned to individuals to increase accountability and prevent errors and fraud.

Treasurer

A treasurer is an officer of a company or organization responsible for managing financial operations, including investment, risk management, and corporate finance.

Establishment Of Responsibility

An internal control principle aiming to assign specific responsibilities to individuals, thus ensuring accountability and reducing the risk of errors and fraud.

Cashier Department Supervisors

These are managers responsible for overseeing the operation of cashiers and related transactions within a retail or service environment, ensuring accuracy and customer satisfaction.