The lower of cost and net realizable value rule for inventory valuation must be applied to each individual unit separately, and not to major categories of inventory.

Question

Quizplus · Accepted Answer

The lower of cost and net realizable value rule can be applied to individual items, groups of similar items, or entire categories of inventory, depending on the level of detail that management deems necessary for accurately representing inventory value.

The Lower of Cost and Net Realizable Value Rule for Inventory