In applying the lower of cost or net realizable value rule, "net realizable value" is defined as the price at which the last unit was purchased.

Name: In applying the lower of cost or net realizable value rule, "net realizable value" is defined as the price at which the last unit was purchased.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Net realizable value is the estimated selling price of an item or product, minus any estimated selling expenses such as discounts, returns, and allowances. It is not related to the purchase price of the item.

In Applying the Lower of Cost or Net Realizable Value