The Logic Behind the Lower-Of-Cost-Or-Market Rule Is

question 61

Multiple Choice

The logic behind the lower-of-cost-or-market rule is:

• A)Inventory gradually becomes obsolete.
• B)Inventory that is unsalable should be written down to zero (or its scrap value).
• C)An asset is not worth more than it would cost the owner to replace it.
• D)Inventory that is unsalable should be written down to its replacement cost.

---

Definitions:

Intrinsic Reasons

Motivations that come from within an individual, such as personal satisfaction or enjoyment.

Careers

The progression and actions an individual takes over their working life in one or multiple professions.

Employment

The condition of having paid work or the act of hiring someone to perform a job.

Realistic Choice Stage

A phase in career development where individuals evaluate and narrow down career options based on personal and external realities.