1. The cost of inventories shall be measured using the following except:

a. Specific Identification Method

b. LIFO

c. FIFO

d. Average method

2. The amount of any write down of inventory to net realizable value and all losses of in inventory shall be

a. Recognized as other expense in the period the writedown or loss occurs

b. Deferred until the related inventory is sold

c. Recognized as component of cost of sales in the period the writedown or loss occurs

d. Recognized as operating expense in the period the writedown or loss occurs

3. The use of a discount lost account implies that cost of a purchased inventory item is the

a. Invoice price less the purchase discount taken on the item

b. List price of the item

c. Invoice price of the item

d. Invoice price less the purchase discount allowable whether or not taken on the item