Answer:
$ 4252 is the lower cost price.
Explanation:
Using lower of cost price or lower of market price :
<u>Item</u> <u>Total cost price</u> <u>Total market value</u> <u>Lower of cost or market price</u>
A $ 1980 $ 2420 $ 1980
B $ 1598 $ 1222 $ 1222
C $ 1050 $ 1176 <u> $ 1050 </u>
$ 4252
Answer:
d. because prices usually change, and tracking which units have been sold is difficult
Explanation:
Cost flow assumptions is necessary because there is constant change of cost which is the experience of companies, also due to inflation. If there is a stable cost, cost flow would be inconsequential
