When considering pricing of inventory,three things are important.The first two are that the method must be in accordance with an acceptable financial accounting framework,and the application of the method must be consistent from year to year.What is the third?
A)The input edits over the data entry of prices must be robust.
B)The cutoff testing for the use of supplier invoices should be carefully done.
C)The cost versus market value must be considered.
D)The freight should always be included in the cost of the inventory.

Question

Quizplus · Accepted Answer

The third important thing to consider when pricing inventory is the cost versus market value. This means that the recorded cost of the inventory should be compared to the current market value to ensure that it is not overvalued or undervalued. This is important for accurate financial reporting and to make well-informed business decisions.

When Considering Pricing of Inventory,three Things Are Important