Under the LCNRV basis, net realizable value is defined as current replacement cost.

Name: Under the LCNRV basis, net realizable value is defined as current replacement cost.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Under the LCNRV (Lower of Cost or Net Realizable Value) basis, net realizable value is defined as the estimated selling price in the ordinary course of business, minus reasonably predictable costs of completion, disposal, and transportation, not the current replacement cost.

Under the LCNRV Basis, Net Realizable Value Is Defined as Current