Inventory may be recorded at net realizable value if
A)there is a controlled market with a quoted price.
B)there are no significant costs of disposal.
C)the inventory consists of precious metals or agricultural products.
D)all of these.

Question

Quizplus · Accepted Answer

All of these options are correct. Inventory may be recorded at net realizable value if there is a controlled market with a quoted price, there are no significant costs of disposal, or the inventory consists of precious metals or agricultural products. These situations allow for a reliable estimation of the inventory's value, and therefore it is appropriate to record it at net realizable value.

Inventory May Be Recorded at Net Realizable Value If