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    Financial Accounting
  4. Exam
    Exam 7: Reporting and Interpreting Cost of Goods Sold and Inventory
  5. Question
    The Lower of Cost or Net Realizable Value Rule Is
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The Lower of Cost or Net Realizable Value Rule Is

Question 44

Question 44

True/False

The lower of cost or net realizable value rule is used due to the conservatism constraint,and therefore an inventory calculation may result in a departure from the historical cost principle.

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