alleryInventory of slow-moving items is generally:
AWritten up to NRV
BReported at sale price
CNot valued at all
DWritten down to NRV
Answer & Solution
Correct answer: D. Written down to NRV
1. Slow-moving inventory's NRV often falls below cost as expected selling price drops.
2. AS 2 requires write-down to NRV when NRV < cost.
3. The write-down is recognised in the P&L for the period.
_Source: ICAI BoS Foundation Paper 1, Ch 4 "Inventories", §3 ¶7_
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