The net realizable value method is generally used for products or services that are processed and after splitoff additional value is added to the product and a selling price can be determined.

Question

Quizplus · Accepted Answer

This is correct. The net realizable value method is used for products or services that have gone through some processing or manufacturing and have added value to the point that a selling price can be determined. This method calculates the final selling price for the finished product by subtracting the estimated additional processing, marketing, and selling costs from the estimated selling price.

The Net Realizable Value Method Is Generally Used for Products