Which of the Following Statements Is Incorrect Regarding the Lower-Of-Cost-Or-Net

question 22

Multiple Choice

Which of the following statements is incorrect regarding the lower-of-cost-or-net realizable value (LCNRV) ?

• A) Net realizable value (NRV) is the selling price less estimated costs to complete and estimated costs to make a sale.
• B) In most situations, companies price inventory on a total-inventory basis.
• C) One of two methods may be used to record the income effect of valuing inventory at net realizable value.
• D) Companies use an allowance account, the "Allowance to Reduce Inventory to Net Realizable Value."

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Definitions:

Collaboration

Collaborating to overcome complicated obstacles.

Unified Communications

A system that integrates various communication tools and platforms within an organization into a single, cohesive interface.

Intranets

Private networks accessible only to an organization's staff, often used to share information, tools, and resources internally.

Extranets

Private networks that allow outside parties limited access to a company's internal information system.