A decline in the replacement price of an item usually precipitates a decrease in the item"s offering price.A. TrueB. False
Designated sector value is the reduced of replacement cost or network realizable value less a common profit margin.A. TrueB. False
The exit from cost when the lower of cost or market dominance is used is justified due to the fact that the loss of energy is charged against revenues in the duration in i m sorry the ns occurs.A. TrueB. False
The direct an approach of recording inventory at market under the lower of cost or industry rule creates a different contra legacy account and a ns account to document the write-off.A. TrueB. False
In using the lower of price or sector rule, industry may be represented by:A. Existing replacement cost.B. Net realizable value.C. Network realizable value less a typical profit margin.D. Any of these may be correct.
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In using the reduced of price or industry rule, the floor is characterized as:A. Present replacement cost.B. Historic cost.C. Network realizable value.D. Network realizable value less a regular profit margin.
In the reduced of cost or market rule, network realizable worth is referred to as the:A. Existing market.B. Ceiling.C. Floor.D. Wall.
When the direct technique is used readjust cost come “market”, what account is debited?A. Inventories.B. Price of products Sold.C. Loss due to Market decline of Inventories.D. Allowance to mitigate Inventory to market Value.
When industry is reduced than cost, and the indirect technique of recording the write-down is used, what account is credited?A. A ns account.B. Merchandise Inventory.C. Allowance to alleviate Inventory to Market.D. Expense of items Sold.
The term sector in the expression "lower of cost or market" generally way the:A. Ceiling.B. Floor.C. Net realizable value.D. Instead of cost.
The lower limit (floor) because that inventory valuation is defined as the marketing price less:A. A normal profit margin.B. Estimated expenses of completion and also disposal.C. Estimated expenses of completion and also disposal and a normal profit margin.D. The net realizable value.
The replacement price of one inventory items is $50. Net realizable worth is $55. Network realizable value less a regular profit margin is $46. The price of the item is $51. The inventory item would be valued at:A. $46.B. $50.C. $51.D. $55.
The replacement price of one inventory item is $60. Net realizable value is $65. Net realizable value less a common profit margin is $59. The price of the article is $62. The designated market value supplied in using Lower-of-Cost-or-Market isA. $59.B. $60.C. $62.D. $65.
The an approach of record inventory at market that substitutes the market value because that cost and also reports the loss as a part of price of goods sold is the:A. Pin money method.B. Direct method.C. Indirect method.D. Instead of method.
The main basis of bookkeeping for inventories is cost. A departure from the price basis the pricing the inventory is compelled where over there is proof that once the goods are offered in the plain course of company theirA. Selling price will be less than your replacement cost.B. Replacement cost will be much more than their net realizable value.C. Price will be less than their replacement cost.D. Future utility will be much less than your cost.
D. The center value of replacement cost, net realizable value and also net realizable value much less a common profit margin
In applying Lower-of-Cost-or-Market, the designated market value isA. The higher of replacement price or network realizable value less a normal profit margin.B. Network realizable value much less a typical profit margin.C. The reduced of network realizable worth or replacement cost.D. The middle value of replacement cost, net realizable value and net realizable value less a typical profit margin.
B. Estimated selling price in the plain course of business less sensibly predictable prices of completion and also disposal.
In no situation can "market" in the lower-of-cost-or-market dominance be an ext thanA. Estimated selling price in the plain course the business.B. Approximated selling price in the plain course of business less sensibly predictable costs of completion and disposal.C. Estimated selling price in the ordinary course of service less fairly predictable expenses of completion and also disposal and an allowance for an about normal benefit margin.D. Estimated selling price in the ordinary course of service less fairly predictable expenses of completion and disposal, an allowance for an approximately normal benefit margin, and an sufficient reserve for feasible future losses.
Inventory may be tape-recorded at net realizable value ifA. Over there is a regulated market with a quoted price.B. There room no far-reaching costs that disposal.C. The inventory is composed of precious metals or farming products.D. Every one of these.
Inventories of details minerals and farming products space valued at:A. Cost.B. Lower of cost or market.C. Net realizable value.D. Replacement cost.
When is the loved one sales value technique used?A. As soon as purchasing damaged inventory.B. Once purchasing a group of like items.C. Once purchasing a team of differing units.D. Once purchasing a commodity.
he sales worth of A is (6,000 devices X $24 each) $144,000 and also B is (14,000 systems X $8 each) $112,000 totaling $256,000. Thus, the price allocated come A based upon relative sales values is ($144,000 / $256,000) 56.25% the the $160,000 or $90,000. The cost per unit the A is ($90,000/6,000) $15.00 making 2,000 units worth $30,000. Earnings of $48,000 much less $30,000 outcomes in a gross benefit of $18,000.
Bronte Corporation gained two inventory items in ~ a lump-sum expense of $160,000. The acquisition consisted of 6,000 systems of product A, and 14,000 units of product B. Product A normally sells because that $24 per unit, and also product B because that $8 every unit. If Bronte selling 2,000 systems of A, what amount of gross profit need to it recognize?A. $1,500.B. $4,500.C. $18,000.D. $9,500.
The sales worth of X001 is (3,000 X $20 each) $60,000 and also the X002 units space (3,000 X $10 each) $30,000 totaling $90,000. Thus, the cost allocated to X002 based on relative sales worths is ($30,000/$90,000) 33.33% of the $60,000 or $20,000. The price per unit of X002 is ($20,000/3,000) $6.67 making 1,000 systems worth $6,670. Earnings of $10,000 less expense of $6,670 results in a gross benefit of $3,330.
Crown Corporation acquired two list items in ~ a lump-sum cost of $60,000. The acquisition contained 3,000 units of product X001, and also 3,000 devices of product X002. X001 generally sells because that $20 every unit, and also X002 for $10 every unit. If Crown selling 1,000 units of X002, what amount of pistol profit have to it recognize?A. $1,000.B. $3,330.C. $6,670.D. $10,000.
The relative sales value method is provided throughout the:A. Farming products industry.B. Meat-packing industry.C. Mining industry.D. Petroleum industry.
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If a product amount the inventory has been ordered with a formal acquisition contract in ~ the balance sheet date for future shipment at firm prices,A. This reality must be disclosed.B. Disclosure is forced only if prices have declined due to the fact that the day of the order.C. Disclosure is forced only if prices have since risen substantially.D. One appropriation that retained income is necessary.