When applying the lower-of-cost-or-market rule to inventory valuation according to International Financial Reporting Standards, market always is:

When applying the lower-of-cost-or-market rule to inventory valuation according to International Financial Reporting Standards, market always is:




A. Replacement cost.
B. Net realizable value.
C. Net realizable value reduced by a normal profit margin.
D. None of the above.


Answer: B. Net realizable value.


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