The lower-of-cost-or-net realizable value method may be applied to each inventory item or to totals of each inventory category or to the entire inventory.

Question

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The lower-of-cost-or-net realizable value method allows for valuation to be applied to individual items, categories of items, or the entire inventory, providing flexibility in how inventory values are assessed and reported.

The Lower-Of-Cost-Or-Net Realizable Value Method May Be Applied to Each