In the retail inventory method of estimating ending inventory the method relies on consistent markup of retail prices instead of a gross profit margin which is used in the gross profit method.

Question 1 options:

	True
	False

If a company uses a cost flow assumption such as FIFO, average cost, or specification identification inventory is valued for write-down purposes using the lower of cost or net realizable value.

Question 7 options:

	True
	False

Question 8 (1 point)

Current liabilities related to employees such as employee withholding, payroll taxes, and compensated absences represent the type of current liabilities for amounts determined by operating activities.

Question 8 options:

	True
	False

Question 9 (1 point)

If a company product selling price is $175 and the cost for packaging $10 and the cost for transportation $5, what is the net realizable value of the product in inventory?

Question 9 options:

	$165
	$160
	$170
	$190

Question 10 (1 point)

In the write-down inventory valuation method of Lower of Cost or Market the Market value is defined as the current replacement costo -- the cost the company would pay to replace the item.

Question 10 options:

	True
	False

Question 11 (1 point)

Brown Company has the following information available regarding each unit of its inventory:

Selling price $5200

Cost of completion $300

Cost $5100

What is the amount that should be used for the inventory value for lower of cost or net realizable value:

Question 11 options:

	$5100
	$4800
	$5000
	$4900