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Which statement is true concerning the lower-of-cost-or-market method? A.It requires the company to reduce its inventory to its original cost if prices are rising. B.Inventories
Which statement istrueconcerning the lower-of-cost-or-market method?
A.It requires the company to reduce its inventory to its original cost if prices are rising.
B.Inventories must be adjusted to replacement cost at year-end if the cost in the accounting records is less than the market value to replace the inventory.
C.Companies must record a write-down if the cost of their inventories is greater than their replacement cost
D.It requires companies to maintain inventory reserves.
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