Which of the Following Is Not True

question 66

Multiple Choice

Which of the following is not true?

• A)Acquisition cost for a merchandising firm includes the costs incurred to purchase and transport the inventory prior to sale.
• B)Acquisition cost for a manufacturing firm includes the direct material, direct labor, and manufacturing overhead cost to produce the inventory.
• C)If the market values of inventory items decline below acquisition cost prior to sale, firms must reduce their balance sheet carrying values using the lower of cost or market method.
• D)U.S.GAAP uses a combination of replacement cost and net realizable values to measure market value.
• E)U.S.GAAP and IFRS permits firms to remeasure inventories upward when market value exceeds acquisition cost.

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Definitions:

Solve Problems

The process of identifying, assessing, and finding solutions or strategies to address difficulties or challenges.

Think Independently

The ability to form opinions, make decisions, and solve problems based on one’s own reasoning and judgment without undue influence from others.

Win-lose Strategy

A competitive negotiation or conflict resolution approach where one party's gain is perceived to be at the other party's loss.

Conflict Manager

pertains to a person or mechanism that effectively addresses, navigates, and resolves disagreements or disputes in a constructive manner.