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In accounting for inventories, generally accepted accounting principles require departure from the historical cost principle when:

the utility of inventory has fallen below cost. This rule is known as the “lower-of-cost-or-market” rule. The term “market” as defined here means

A. Original cost minus allowance for obsolescence.

B. Original cost plus normal profit margin.

C. Replacement cost of the inventory.

D. Original cost minus cost to dispose.

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Question ajoutée par Utilisateur supprimé
Date de publication: 2015/02/13
Muhammad Usman Shafiq
par Muhammad Usman Shafiq , Manager Accounts , Sehat Al Sewdi Hospital (Dr.Sulaiman Al Habib Medical Group)

C. Replacement cost of the inventory.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Option C  >>>>>>>>>>>>>>   Replacement cost of the inventory.