In the single period inventory model:
A)salvage value is always positive.
B)goodwill (shortage) costs are always less than the item cost.
C)goodwill (shortage) costs are always less than the salvage value.
D)salvage value is always less than the selling price.

Question

Quizplus · Accepted Answer

Salvage value is typically less than the selling price because it represents the value that can be recovered from unsold inventory, which is usually sold at a discount or disposed of at a lower value than its original selling price.

In the Single Period Inventory Model