ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 51

d. To permit future profits to be recognized. 33. Which of the following is not an acceptable approach in applying the lower-of-cost-or-market method to inventory? a. Inventory location. b. Categories of inventory items. c. Individual item. d. Total of the inventory. 34. Which method(s) may be used to record a loss due to a price decline in the value of inventory? a. Cost-of-goods-sold. b. Sales method. c. Loss method d. Both a and c. 35. Why might inventory be reported at sales prices (net realizable value or market price) rather than cost? a. When there is a controlled market with a quoted price applicable to all quantities and when there are no significant costs of disposal. b. When there are no significant costs of disposal. c. When a non-cancellable contract exists to sell the inventory.