When applying the lower-of-cost-or-net-realizable-value rule to inventory valuation, net realizable value refers to
A)estimated selling price less cost to complete and sell.
B)original cost.
C)current replacement cost.
D)original cost, less physical deterioration.

Question

Quizplus · Accepted Answer

Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.

When Applying the Lower-Of-Cost-Or-Net-Realizable-Value Rule to Inventory Valuation, Net Realizable