The justification for the inventory valuation rule,the lower of cost and net realisable value,is:

Name: The justification for the inventory valuation rule,the lower of cost and net realisable value,is:
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The lower of cost and net realisable value rule is based on the principle of conservatism, where a more cautious approach is taken to financial reporting by recognising losses and liabilities as soon as they become probable or likely, but deferring gains and assets until they are certain.

The Justification for the Inventory Valuation Rule,the Lower of Cost