Vladimir is a manager at auttowort inc., an automotive plant in the united states. auttowort has started expanding to other countries and is now sourcing 25 percent of its parts at a discounted rate from an automotive supplier in brazil. it has also outsourced some of its operations to india. this scenario most likely exemplifies:

At the end of the fiscal year, apha airlines has an outstanding non-cancellable purchase commitment for the purchase of 1 million gallons of jet fuel at a price of $4.10 per gallon for delivery during the coming summer. the company prices its inventory at the lower of cost or market. if the market price for jet fuel at the end of the year is $4.50, how would this situation be reflected in the annual financial statements?