Valuing inventories using net realisable value method requires managers to:
A) estimate sales value of the components of the merchandise, less any anticipated conversion costs.
B) estimate costs of the merchandise based on the most recent job cost sheets.
C) estimate sales value of the merchandise less any anticipated costs of completing and selling the products.
D) estimate sales value of the merchandise, disregarding any anticipated costs of completing and selling the products.

Question

Quizplus · Accepted Answer

Valuing inventories using net realisable value method requires managers to estimate the sales value of the merchandise less any anticipated costs of completing and selling the products. This method values inventory based on the amount that is expected to be received from selling the merchandise, after deducting any costs that will be incurred in order to make the sale.

Valuing Inventories Using Net Realisable Value Method Requires Managers To