Under the lower-of-cost-or-net realizable value basis in valuing inventory, net realizable value is the

Question

Quizplus · Accepted Answer

Net realizable value is the expected amount of revenue that a company can receive from the sale of inventory, after deducting any related selling expenses. Therefore, choice A is the correct answer. Choice B is incorrect because the selling price may not always reflect the net realizable value. Choices C and D are incorrect because they are not related to the net realizable value.

Under the Lower-Of-Cost-Or-Net Realizable Value Basis in Valuing Inventory, Net