The lower of cost and NRV standard specific that the comparison is usually applied on
A)total inventory.
B)individual categories of inventory.
C)an item-by-item basis.
D)major categories of inventory.

Question

Quizplus · Accepted Answer

The lower of cost and NRV standard is applied on an item-by-item basis, which means that each individual item in inventory is compared to its original cost and its expected net realizable value (NRV) to determine which is lower. This standard is not applied to total inventory or major categories of inventory as a whole, but rather to each item separately.

The Lower of Cost and NRV Standard Specific That the Comparison