Why is it likely that the result from applying the lower-of-cost-or-market rule using a total approach (i.e.,

Question:

Why is it likely that the result from applying the lower-of-cost-or-market rule using a total approach (i.e., by comparing total cost to total market value) and the result from applying the rule on an item-by-item basis will differ?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1133161646

7th Edition

Authors: Gary A. Porter, Curtis L. Norton

See More Books

Question Posted: Jan 12, 2012 02:58 AM

See More Questions

In applying the lower of cost or market rule for inventory, what amount do firms typically use as the estimate of market value? Note that the lower of cost or market rule measures inventory in...
Lower of Cost or Market Frost Companys inventory records for the years 2016 and 2017 reveal the cost and market of the January 1, 2016, inventory to be $125,000. On December 31, 2016, the cast of...
Lower of Cost or Market The following information for Tuell Company is available: Required: What is the correct inventory value in each of the preceding situations if Tuell uses: 1. U.S. GAAP? 2....
A hospital radiology department has the following activities: Activity Number Activity Description 1 Repair X-ray equipment 2 Taking X-ray with X-ray...
Your client, Jacob, turned 66 years old this year. Jacob has no heirs and has decided that he would like to sell a life insurance policy to fund a trip to Africa that he has wanted to take. Jacob...
Convert: (a) 4.50 Cal to calories (b) 600.0 Cal to kilojoules (c) 1.000 J to calories (d) 50.0 Cal to joules
Jamie Walker, regional vice president of sales for American Food Processors (AFP), is looking at the performance numbers of his sales force for the past year. He is starting to get that sinking...
Ann McCutcheon is hired as a consultant to a firm producing ball bearings. This firm sells in two distinct markets, each of which is completely sealed off from the other. The demand curve for the...
please name one digital/social media invention/trend that you are grateful for and could not live without. Give 3 reasons why and support your opinion with data, statistics or a newsletter article....
A particle is placed on the inside of a rough, hollow cylinder of radius 2a. The cylinder is placed upright and 43 can rotate about an axis through its centre. The particle has mass in and the...
What is the rationale for valuing inventory at the lower of cost or market?
Ralston Corp.s cost of sales has remained steady over the last two years. During this same time period, however, its inventory has increased considerably. What does this information tell you about...
Jonnel Enterprises, Inc., contracted to construct a student dormitory at Clarion State College. On May 6, Jonnel entered into a written agreement with Graham and Long as electrical contractors to...
True Or False Contributory negligence prevents a negligent plaintiff from recovering unless the defendant is more negligent than the plaintiff.
True Or False Those states that have adopted comparative negligence have either abolished assumption of risk as a separate defense or have merged it into the defense of comparative negligence.
A doctor will not necessarily have to disclose a risk if a. the risk is highly improbable, and the doctor believes that disclosing it would severely reduce the effectiveness of the treatment. b. the...
In assessing a plaintiffs conduct who has allegedly assumed the risk, a(n) ____________ standard is used, whereas in assessing a plaintiffs conduct who was allegedly negligent, a(n) ____________...
What must be shown before a plaintiff will be considered to have impliedly assumed the risk?
What are the five Cs of credit? Give an example of what happens when one of the 5Cs is not met. Are there any other factors a firm should consider?
Economic feasibility is an important guideline in designing cost accounting systems. Do you agree? Explain.
Johnson Ltd provides a personal computer maintenance and repair service. It has overheads of 10,000 each month. Each month 1,000 direct labour hours are worked and charged to cost units (jobs carried...
On September 1, Northhampton Industries signed a six-month lease for office space, which is effective September 1. Northhampton agreed to prepay the rent and mailed a check for $12,000 to the...
Denton Corporation employs 50 workers in its plant. Each employee is paid $10 per hour and works seven hours per day, Monday through Friday. Employees are paid every Friday. The last payday was...
Hudson Corp. has extra space in its warehouse and agrees to rent it out to Stillwater Company at the rate of $2,000 per month. The space was made available to Stillwater beginning on September 1,...
Consider a Carnot heat engine placed between a finite thermal energy source and an infinite thermal energy sink. Since the temperature of the thermal source is constantly changing, then so must the...
A complex pair of eigenvalues are shown on the s-plane below. For this pair of eigenvalues, Wn ? W = ? damping ratio = ? time constant = ? X 2 -1 0 X -2 If r(t) is a step with magnitude 10, Use...
F m J, r Motor k = k T b R www C

Why is it likely that the result from applying the lower-of-cost-or-market rule using a total approach (i.e.,

Question:

Step by Step Answer:

Application of the lowerofcostormarket rule on a total basis compared with an itemb...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

Students also viewed these Managerial Accounting questions