Question: Explain the difference between Lower of Cost or Net Realizable Value (LCNRV) and Lower of Cost or Market (LCM) approaches to valuing inventory at the

Explain the difference between Lower of Cost or Net Realizable Value

Explain the difference between Lower of Cost or Net Realizable Value (LCNRV) and Lower of Cost or Market (LCM) approaches to valuing inventory at the end of a reporting period. Include the formulas for net realizable value and market in your answer. When should each valuation method be used? In addition, explain the journal entry for a material adjustment to inventory due to application of either LCNRV or LCM. Indicate what, if any, ethical issues are considered when valuing inventory. In your answer, please include the impact of an overstatement of inventory on the financial statements

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