The lower-of-cost-or-net realizable value rule for inventory may be applied to:
A) Each inventory item
B) The totals of major inventory classes or categories
C) The total inventory
D) All of the above
E) None of the above

Question

Quizplus · Accepted Answer

The lower-of-cost-or-net realizable value rule can be applied to each inventory item, the totals of major inventory classes or categories, or the total inventory, allowing for flexibility in inventory valuation.

The Lower-Of-Cost-Or-Net Realizable Value Rule for Inventory May Be Applied