What is the maximum amount at which inventory can be valued when the goods have experienced a permanent decline in value?
A) Net realizable value reduced by a normal profit margin
B) Sales price
C) Historical cost
D) Net realizable value

Question

Quizplus · Accepted Answer

The maximum amount at which inventory can be valued when the goods have experienced a permanent decline in value is the net realizable value. This reflects the estimated selling price in the ordinary course of business, minus reasonably predictable costs of completion, disposal, and transportation.

What Is the Maximum Amount at Which Inventory Can Be