In accounting for inventory,net realizable value equals:

Question

Quizplus · Accepted Answer

Net realizable value is the amount of revenue that a company expects to receive from the sale of its inventory, less any costs associated with completing the sale, such as transportation and disposal costs. Therefore, option C is the most accurate representation of net realizable value. Option A only accounts for potential returns, while option B subtracts estimated profit rather than costs of completing the sale.

In Accounting for Inventory,net Realizable Value Equals