Question

The lower of cost or market rule may be applied by comparing the market value of the inventory to the cost of the inventory based on:

Answer 1

Answer:

d. Industry inventory standards.

Explanation:

As we know that the lower of the cost or the market value is to be applied for the inventory valuation. It can be applied for whole inventory or the individual item of the inventory or one or more categories of inventory

But it should not be applied for the inventory made for industry standards

hence, the option d is correct