The Practice of Using the Lower of Cost and Net

question 51

Multiple Choice

The practice of using the lower of cost and net realizable value to evaluate inventory reflects which of the following accounting principles?

• A)Matching principle.
• B)Revenue recognition.
• C)Conservatism.

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Definitions:

Multiple Workplaces

Refers to employment arrangements where an individual or a group works in more than one location for a single employer.

National Union

A labor union that operates across an entire country, representing the interests of workers from specific industries or sectors on a national level.

Coordination

The process of organizing activities or groups to ensure efficient operation and alignment towards common goals.

Networking

The act of interacting with others to exchange information and develop professional or social contacts.