Net realisable value of inventory refers to:
A) estimated selling price of the inventory.
B) estimated selling price of the inventory less estimated costs of completion.
C) estimated selling price of the inventory less estimated costs of completion and the estimated costs necessary to make the sale.
D) estimated cost of acquiring the inventory.

Question

Quizplus · Accepted Answer

Net realisable value of inventory is defined as the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. This includes costs such as transportation and sales commissions that are directly associated with getting the inventory ready for sale.

Net Realisable Value of Inventory Refers To