Ending inventory should be measured based on the lower of actual cost or net realizable value.

Name: Ending inventory should be measured based on the lower of actual cost or net realizable value.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

According to the lower of cost or market rule (also known as lower of cost or net realizable value), ending inventory should be measured at the lower of its historical cost or its net realizable value (i.e. the amount for which it can be sold minus any disposal costs). Therefore, the statement is true.

Ending Inventory Should Be Measured Based on the Lower of Actual