Under the LIFO or retail inventory method the Net Realizable Value is considered the ceiling that prevents inventory from being valued at amount higher than what the company could reasonably sell it.

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Under the LIFO (Last In, First Out) or retail inventory method, the Net Realizable Value acts as a ceiling to prevent inventory from being valued higher than the amount for which it could reasonably be sold, ensuring that inventory is not overstated on the financial statements.

Under the LIFO or Retail Inventory Method the Net Realizable