When separable costs are deducted from the selling price that can be achieved after further processing, the result is called the:
A) Relative sales value
B) Net realizable value
C) Budgeted value
D) Inventory value

Question

Quizplus · Accepted Answer

Net realizable value is the selling price of a product after subtracting all separable costs from the final sales price. It is the most appropriate way of measuring inventory value as it takes into account the costs of further processing and can provide a more accurate picture of a company's profitability.

When Separable Costs Are Deducted from the Selling Price That