Most businesses apply the lower of cost and net realizable value rule to groups of similar or related items.

Question

Quizplus · Accepted Answer

This statement is true. The lower of cost and net realizable value rule is typically applied to groups of similar or related items, such as inventory items or accounts receivable. This allows businesses to account for any potential losses or write-downs in a more efficient and accurate way.

Most Businesses Apply the Lower of Cost and Net Realizable