When the lower of cost or market rule requires an inventory adjustment,the:
A) adjustment usually, but not always, reduces the book value of inventory.
B) write-down is usually reported as a part of cost of goods sold.
C) inventory adjustment is recorded in a contra-account called Inventory Allowances.
D) write-down does not affect any of the financial statements.

Question

Quizplus · Accepted Answer

The Answer of When the lower of cost or market rule requires an inventory adjustment,the:
A) adjustment usually, but not always, reduces the book value of inventory.
B) write-down is usually reported as a part of cost of goods sold.
C) inventory adjustment is recorded in a contra-account called Inventory Allowances.
D) write-down does not affect any of the financial statements.

When the Lower of Cost or Market Rule Requires an Inventory