If you wanted to sell your MP3 player to buy a new one with more memory, which of the following methods of valuing an item would be the most useful?
A)Cost
B)Replacement cost
C)Replacement cost new
D)Net realizable value

Question

Quizplus · Accepted Answer

Net realizable value takes into account the estimated selling price of the item, as well as any costs associated with selling it (such as shipping or transaction fees). This would be the most useful method for someone looking to sell their MP3 player, as it would give them an accurate estimate of how much they can realistically expect to receive after selling it.

If You Wanted to Sell Your MP3 Player to Buy