The Accounting Rule,"lower of Cost or Market" Could More Clearly

Multiple Choice

The accounting rule,"lower of cost or market" could more clearly be stated

A) lower of the cost of inventory when purchased or the sale price of the inventory item at year-end
B) lower of the cost of inventory when purchased or the cost to replace the inventory item at year-end
C) lower of the cost of inventory when sold or the cost to replace the inventory item at year-end
D) lower of the cost of inventory when purchased or the cost to replace the inventory item at mid-year