The Lower-Of-Cost- And-Net-Realizable-Value Rule

question 134

Multiple Choice

The lower-of-cost- and-net-realizable-value rule:

• A) Is used in conjunction with the other inventory cost flow assumptions.
• B) Cannot be used if Weighted Average Cost or FIFO is also used.
• C) Can be used in conjunction with Weighted Average Cost but not FIFO.
• D) Can only be used with the specific cost identification cost flow assumption.

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Definitions:

Motivation

The combination of forces that drive people to satisfy their needs.

Psychographics

The study of personality, values, opinions, attitudes, interests, and lifestyles of people, used in market research.

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Statistical data relating to the population and particular groups within it, often used for marketing, policy-making, and social research.

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The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.