36&37

Using the lower of cost or market method usually applies when inventory is held for a short time inventory is held for a long time when the market value of inventory has risen none of the above An assumption necessary to the use of the Gross profit method is that the Gross Profit amount is constant from period to period. Inventory level remains constant. The rate of Gross Profit is constant from period to period. The Gross profit percentage increases at the rate of inflation