Question

When net realizable value of inventory falls below cost no adjustment?

Answer 1

Therefore, accountants evaluate inventory and employ lower of cost or net realizable value considerations. This simply means that if inventory is carried on the accounting records at greater than its net realizable value (NRV), a write-down from the recorded cost to the lower NRV would be made.

Answer 2

Explanation:

Lower of cost or net realizable value simply means that if inventory is carried on the ... It is noteworthy that the lower-of-cost-or-NRV adjustments can be made for each item in inventory ...