Under the LCNRV approach, inventory is valued at the lower of cost or

Name: Under the LCNRV approach, inventory is valued at the lower of cost or
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Question

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The LCNRV approach stands for Lower of Cost or Net Realizable Value. Therefore, inventory is valued at whichever is lower between its cost and net realizable value, also known as the estimated selling price minus the estimated costs of completion and disposal. Choice A, B, and D are not correct terms in accounting and do not relate to the LCNRV approach.

Under the LCNRV Approach, Inventory Is Valued at the Lower