c. may sometimes exceed net realizable value.
d. should always be equal to net realizable value less a normal profit margin.
26. Lower-of-cost-or-market
a. is most conservative if applied to the total inventory.
b. is most conservative if applied to major categories of inventory.
c. is most conservative if applied to individual items of inventory.
d. must be applied to major categories for taxes.
27. An item of inventory purchased this period for $ 15.00 has been incorrectly written down to its current replacement cost of $ 10.00. It sells during the following period for $ 30.00, its normal selling price, with disposal costs of $ 3.00 and normal profit of $ 12.00. Which of the following statements is not true?