QUESTION $9$

The lower of cost or market rule for inventory valuation requires companies to compare the cost of inventory with its:

Net realizable value

Historical cost

Replacement cost

Gross profit margin

QUESTION $10$

An increase in inventory turnover indicates:

More efficient use of inventory

Less efficient use of inventory

No impact on inventory efficiency

A decrease in sales volume

QUESTION $11$

Which of the following inventory systems requires a periodic physical count of inventory to determine the ending inventory balance?

Perpetual inventory system

Just$-$in$-$time inventory system

Average cost inventory system

Periodic inventory system

QUESTION $12$

The cost of inventory includes:

Purchase price, transportation costs, and any applicable taxes

Purchase price only

Purchase price and any applicable taxes only

Purchase price and storage costs only