The lower of cost and net realizable value rule causes losses in the value of inventory to be recognized in the period when:Multiple Choice
A. The inventory is purchased.
B. The value of inventory declines below cost.
C. The inventory is sold.
D. Cash collection from the customer fails to occur.

When the net realizable value of an inventory is less than the cost, this means that the inventory would have to be restated at the NRV. There would therefore be a loss realized/recognized as the excess of cost over NRV

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The lower of cost and net realizable value rule causes losses in the value of inventory to be recognized in the period when:Multiple Choice A. The inventory is purchased. B. The value of inventory declines below cost. C. The inventory is sold. D. Cash collection from the customer fails to occur.

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The lower of cost and net realizable value rule causes losses in the value of inventory to be recognized in the period when:Multiple Choice
A. The inventory is purchased.
B. The value of inventory declines below cost.
C. The inventory is sold.
D. Cash collection from the customer fails to occur.