If a Company Values Inventory at the Lower of Cost

question 133

Multiple Choice

If a company values inventory at the lower of cost or market,which of the following is the value of merchandise inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole.

• A)$6,960
• B)$7,700
• C)$6,540
• D)$7,280

---

Definitions:

Human Resources

The department within a business that is responsible for all things worker-related, including recruitment, training, and compliance.

Business Trip

is a journey undertaken for work-related purposes, often involving travel outside the regular workplace.

Workers' Compensation

An insurance type that offers employees medical benefits and replaces wages when they get injured while working.

Hotel Room

An accommodation provided by hotels, consisting of a room with sleeping facilities and often additional amenities, for the temporary stay of guests.