Under the Principle of Lower-Of-Cost-Or-Market,when a Company Has 10 Units

question 19

Multiple Choice

Under the principle of lower-of-cost-or-market,when a company has 10 units of inventory A with market value of $50 and a cost of $60,what is the adjustment?

• A)Debit Inventory $100; credit Cost of Goods Sold $100.
• B)Debit Inventory $500; credit Cost of Goods Sold $500.
• C)Debit Cost of Goods Sold $100; credit Inventory $100.
• D)Debit Cost of Goods Sold $500; credit Inventory $500.

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Definitions:

Constructionist Perspective

A theoretical approach that suggests reality is socially constructed through human interpretation and interactions, emphasizing the subjective meaning of phenomena.

Human Volition

The capacity or power of individuals to make choices and decisions with a sense of free will, uninfluenced by external forces.

Determined Behavior

Actions that are influenced or controlled by external or internal factors, rather than by free will.

Absolutist Perspective

A viewpoint that believes in absolute principles in political, ethical, or philosophical matters, with no room for relative interpretations.