Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the following statements is correct?

Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the following statements is correct?


cost is greater/ NRV greater than
than net real value/ replacement cost
a Y Y
b N N
c Y N
d N Y




A. Option a

B. Option b

C. Option c

D. Option d


Answer: C. Option c


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