Which statement is incorrect regarding LCNRV?

Which statement is incorrect regarding LCNRV?




A. Net realizable value is the selling price kess estimated cost to complete and estimated cost of disposal
B. In most situations, entities measure 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. Entities use an allowance account to reduce inventory to net realizable value



Answer: B. In most situations, entities measure inventory on a total inventory basis


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