|Lower of Cost or Market #1||Open|
1) Another term for "limitation". (For example, the ceiling or floor for replacement cost.)
2) "Market" in LCM is the constrained replacement cost whether by purchase or production. In other words LCM will apply to a merchant and to a __________________.
3) The upper limit for the market amount in LCM is also referred to as the _____________.
4) When cost is less than the floor, the LCM rule requires that ________ be used.
5) __________ profit is subtracted from NRV in order to determine the floor in LCM.
6) The type of gain that occurs when the value of items in a company's inventory increases.
7) The "R" in NRV.
8) Only in exceptional cases will ARB No. 43 allow inventory to be reported at more than cost. One of these exceptional cases would involve precious ______________ (plural).
9) If you desire to have the most conservative results from LCM, you should apply the LCM rule to every inventory _________.
10) The result on the income statement when an adjustment is made to reduce inventory from cost to market.
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