d. the market value figure for ending inventory is substituted for cost and the loss is buried in cost of goods sold.
29. Lower-of-cost-or-market as it applies to inventory is best described as the
a. drop of future utility below its original cost.
b. method of determining cost of goods sold.
c. assumption to determine inventory flow.
d. change in inventory value to market value.
30. The floor to be used in applying the lower-of-cost-ormarket method to inventory is determined as the
a. net realizable value.
b. net realizable value less normal profit margin.