Market value is determined by
A)what the inventory item can be sold for
B)what a competitor is selling the item for
C)what the advertised price of the item is
D)the cost of replacing the inventory item

Question

Quizplus · Accepted Answer

Market value is determined by the cost of replacing the inventory item, also known as the replacement cost approach. This method calculates the value of an item by considering the cost of purchasing a new asset with the same characteristics and features. It is considered the most reliable method for determining market value because it reflects the current cost of the item and the forces of supply and demand in the market.

Market Value Is Determined by