Reading Verification Form -- Chapters 9
Spiceland and Sepe

1. What are the upper and lower constraints (or "ceiling" and "floor") used in the lower of cost or market valuation of inventory?
 
 
 
 
 
 
 
 

 
 

2. Give some examples of situations in which it might be necessary to estimate the dollar amount of ending inventory.
 

 
 
 
 
 
 
 
 
 

3. What data are required to use the retail inventory method in its simplest form?
 
 
 
 
 
 
 
 
 
 

4. What is the difference between lower of cost or market (conventional) retail, average cost retail, and LIFO (stable prices) retail in the way the ending inventory at cost is computed?
 
 
 
 
 
 
 
 
 

This page is maintained by Dr. Susan Lynn. It was last updated on February 7, 2000.