An argument against use of the lower of cost and net realizable value rule is its lack of:
A)Relevance.
B)Reliability.
C)Consistency.
D)Objectivity.

Name: An argument against use of the lower of cost and net realizable value rule is its lack of: A)Relevance. B)Reliability. C)Consistency. D)Objectivity.
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Question

Quizplus · Accepted Answer

The lower of cost and net realizable value rule can lead to inconsistencies in financial reporting because it allows for different valuation methods to be applied to similar inventory items over time.

An Argument Against Use of the Lower of Cost and Net