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."

---

Definitions:

Polypeptide Chain

A long, continuous sequence of amino acids linked by peptide bonds, which folds into a functional protein or acts as part of a protein.

Amino Acids

Organic substances that amalgamate to produce proteins, functioning as life's essential building blocks.

Source Of Nitrogen

A substance or process that supplies nitrogen, essential for plant growth and various biological processes.

Proteins

Large biomolecules composed of amino acids, essential for the structure, function, and regulation of the body's tissues and organs.