Which of the following are reasons for the selling value of some inventory items falling below their cost price?
I. Obsolescence
II. Damage
III. Past use-by date
IV. A rise in the market price
A) I and II only.
B) II and III only.
C) I, II and III only.
D) I, II, III and IV.

Question

Quizplus · Accepted Answer

I, II, and III (Obsolescence, Damage, Past use-by date) are reasons for the selling value of some inventory items falling below their cost price, as they reduce the desirability or usability of the items. A rise in the market price would typically increase the value of inventory, not decrease it.

Which of the Following Are Reasons for the Selling Value