The lower of cost or net realisable value procedure is used with which of the following?
i. FIFO
ii. Weighted average
iii. The perpetual method
A) i.
B) ii
C) i, ii
D) i, ii, iii

Question

Quizplus · Accepted Answer

The lower of cost or net realisable value procedure is applicable to all inventory valuation methods, including FIFO (First-In, First-Out), Weighted Average, and the Perpetual method. This procedure ensures that inventory is reported at the lower of its cost or the net realisable value on the balance sheet, reflecting a conservative valuation of assets.

The Lower of Cost or Net Realisable Value Procedure Is