The original cost of an inventory item is above the replacement cost. The replacement cost is below the net realizable value less the normal profit margin. Under the lower of cost or market method the inventory item should be priced at its
A) Original cost
B) Replacement cost
C) Net realizable value
D) Net realizable value less the normal profit margin

Question

Quizplus · Accepted Answer

The Answer is D

The Original Cost of an Inventory Item Is Above the Replacement