Quiz 9.54 – LCM
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
When LCM is used, the market can’t be:
When LCM is used, the market can’t be:
Which supports the statement on applying lower of cost or market method, when reports its inventory at net realizable value?
An inventory may be written back up if the net realizable value increases if it is written down because of the lower of cost or net realizable value.
This is NOT usually needed in estimating the ending inventory through the gross profit method:
Inventory is valued at the lower of cost or net realizable value if LIFO is used. True or false?
The denominator in the cost-to-retail percentage in the LIFO retail method INCLUDES:
The denominator in the cost-to-retail percentage in the LIFO retail method does NOT include:
Which is needed to calculate the denominator of the current-period cost-to-retail percentage in the LIFO Retail Method?
To determine cost-to-retail percentage for current year using the Retail Method:
The market value of using the lower of cost or market (LCM) method is defined as replacement cost. True or false?