Explain what is meant by the cost rule or net realizable value, whichever is less, and how it is applied to inventory, and whether it contradicts accounting principles I need explain and write there please.

Explain what is meant by the cost rule or net realizable value, whichever is less, and how it is applied to inventory, and whether it contradicts accounting principles I need explain and write there please.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 1CYBK

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Question

Explain what is meant by the cost rule or net
realizable value, whichever is less, and how it
is applied to inventory, and whether it
contradicts accounting principles
I need explain and write there please.

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