The lower-of-cost-or-net realizable value (LCNRV) basis may be used with all of the following methods except
A) average cost.
B) FIFO.
C) LIFO.
D) The LCM basis may be used with all of these.

Question

Quizplus · Accepted Answer

The LCNRV basis can be used with average cost, FIFO, and LIFO methods. Additionally, the LCM (lower-of-cost-or-market) basis can also be used with these methods. Therefore, the correct answer is D.

The Lower-Of-Cost-Or-Net Realizable Value (LCNRV) Basis May Be Used with All