Net realizable value is selling price less costs of completion and disposal.

Question

Quizplus · Accepted Answer

Net realizable value is calculated as the selling price of a product or inventory item minus the costs incurred to complete the item (such as further processing or packaging) and costs related to the disposal of the item (such as transportation or marketing costs). Therefore, the statement "Net realizable value is selling price less costs of completion and disposal" is true.

Net Realizable Value Is Selling Price Less Costs of Completion