Question

Which is the following is NOT an example of a judgment in accounting for inventory is ___________. Group of answer choices the amount paid to a supplier for raw materials the market value used to determine whether a write-off is required under the lower-of-cost or market the amount of overhead to include in the cost of inventory the choice to use LIFO rather than FIFO

Answer 1

Answer:

This is NOT an example of a judgement in accounting for inventory is:

the amount paid to a supplier for raw materials.

Explanation:

Professional judgment is always required to determine the value to be ascribed to ending inventory.  This judgment results from the application of years of accumulated knowledge and experience which the professional accountant has acquired through relevant accounting or auditing training.  The result is the making of informed inventory valuation decisions while observing professional ethical standards.