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Unformatted text preview: 1750 Lower cost or market In both inventory systems, periodic and perpetual, our goal is to allocate the inventory totals. In order to transfer dollars we must have a cost flow assumptions that allow us to expense it. The final step is to compare the totals using the lower cost or market rule. Market value is the replacement cost. Safeguarding Inventory, Controls Keeping the duties of taking inventory out and accounting separate. One employee cannot do both. The same is true with accounts recievable and payments. 280...
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- Spring '08