For a purchase commitment contained within a single fiscal year, if the market price is less than the contract price, the purchase is recorded at the contract price.

Name: For a purchase commitment contained within a single fiscal year, if the market price is less than the contract price, the purchase is recorded at the contract price.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the market price is less than the contract price, the purchase is recorded at the lower market price to reflect the loss in value.

For a Purchase Commitment Contained Within a Single Fiscal Year