You have learned that inventory may be written down to its current replacement cost or its...

70.2K

Verified Solution

Question

Accounting

You have learned that inventory may be written down to itscurrent replacement cost or its net realizable value if theseamounts are lower than original cost. Why do you think theaccounting profession has decided to violate the cost concept andreduce the value of inventory in these circumstances?

Answer & Explanation Solved by verified expert

4.3 Ratings (803 Votes)

Valuation of inventory is done at lower of cost or market value LCMV Cost of inventory refers to historical cost of inventory whereas market value of inventory refers to Net See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

You have learned that inventory may be written down to itscurrent replacement cost or its net realizable value if theseamounts are lower than original cost. Why do you think theaccounting profession has decided to violate the cost concept andreduce the value of inventory in these circumstances?

You have learned that inventory may be written down to its current replacement cost or its...

70.2K

Verified Solution

Question

Accounting

You have learned that inventory may be written down to itscurrent replacement cost or its net realizable value if theseamounts are lower than original cost. Why do you think theaccounting profession has decided to violate the cost concept andreduce the value of inventory in these circumstances?

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Transcribed Image Text

Other questions asked by students