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c. estimated selling price in the ordinary course of business less
reasonably predictable costs of completion and disposal and an
allowance for an approximately normal profit margin.
d. estimated selling price in the ordinary course of business less
reasonably predictable costs of completion and disposal, an
allowance for an approximately normal profit margin, and an
adequate reserve for possible future losses.
25.
Designated market value
a. is always the middle value of replacement cost, net realizable
value, and net realizable value less a normal profit margin.
b. should always be equal to net realizable value.
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