Lower of Cost and Net Realizable Value (NRV)
Determine the Unit

question 168

Essay

Lower of cost and net realizable value (NRV)
Determine the unit value that should be used for inventory costing, using the "lower of cost and NRV" rule.
$$\begin{array} { l l l l l l l } & \mathbf { A } & \mathrm { B } & \mathrm { C } & \mathbf { D } & \mathbf { E } &\mathbf { F } \\\text { Cost } & \mathbf { \$ 2 . 4 0 } & \mathbf { \$ 2 . 4 0 } & \mathbf { \$ 2 . 3 0 } & \mathbf { \$ 2 . 5 4 } & \mathbf { \$ 2 . 4 4 } & \mathbf { \$ 2 . 6 5 } \\\text { Replacement cost } & 2.20 & 2.60 & 2.20 & 2.50 & 2.42 & 2.36 \\\text { Net realizbble } \text { value } & 2.50 & 2.50 & 2.25 & 2.45 & 2.50 & 2.50\end{array}$$

---

Definitions:

Treatment Means

The average outcomes measured across groups in an experimental study that have been exposed to different conditions or treatments.

Block Means

Average values of data grouped together in blocks, often used in experimental design to account for variation.

Randomized Block Design

A statistical experimental design technique that involves grouping similar experimental units into blocks before randomly assigning treatments to the units within each block.

Treatments

Interventions or conditions that researchers apply to experimental units or subjects to measure their effect.