Lower of cost or NRV

  • Creator
    Topic
  • September 30, 2020 at 10:59 pm #3117315
    animalwithin
    Participant

    Am I correct in assuming that if we have a problem concerning Lower of Cost or NRV the only two numbers we are concerned with/have to solve for are original cost and NRV and then simply take the lower of the two? None of the middle market stuff in Lower of Cost or Market?

Viewing 3 replies - 1 through 3 (of 3 total)
  • Author
    Replies
  • October 1, 2020 at 1:04 am #3117366
    water
    Participant

    You are correct. I believe lower of cost of market only applies to LIFO. Everything else is at lower of cost or NRV

    October 1, 2020 at 1:29 pm #3117675
    animalwithin
    Participant

    Thank you! I've made Lower of Cost/NRV stupidly more difficult than it really is by confusing the two processes.

    October 2, 2020 at 12:40 pm #3118434
    DS
    Participant

    You definitely need to be careful on these types of questions. Usually they will throw a bunch of numbers at you that are irrelevant like the normal profit margin that would go into a lower of cost or market calculation for LIFO.

  • Author
    Replies
Viewing 3 replies - 1 through 3 (of 3 total)
  • The topic ‘Lower of cost or NRV’ is closed to new replies.