Lower-of-cost-or-market
a. is most conservative if applied to the total inventory.
b. is most conservative if applied to major categories of inventory.
c. is most conservative if applied to individual items of inventory.
d. must be applied to major categories for taxes.
Answer: c. is most conservative if applied to individual items of inventory.
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A price elasticity of demand of 2 means that a 10 percent increase in price will result in a:
a) 20 percent increase in quantity demanded. b) 2 percent decrease in quantity demanded. c) 5 percent decrease in quantity demanded. d) 2 percent increase in quantity demanded. e) 20 percent decrease in quantity demanded.
The Truth in Lending Act (Regulation Z) requires that the lender provide the borrower with
A. the annual percentage rate. B. the finance charges. C. the taxes. D. both a and b.