Accounting · Inventory Valuation
Inventory valuation affects both profit measurement and balance-sheet presentation. Under prudent accounting, inventory is generally valued at:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1replacement cost in all industries
- 2cost or net realizable value, whichever is lower✓
- 3net realizable value even when higher than cost
- 4historical cost only in every circumstance
Correct answer
cost or net realizable value, whichever is lower
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