Question

When we say that inventory is to be valued at cost or market price whichever is less. The Term "market" means________.

• A. Current replacement cost
• B. Discounted price
• C. Net realizable value
• D. Historical cost

Answer 1

The correct option is C Net realizable value

When we say that inventory is to be valued at cost or market price whichever is less. The Term "market" means Net realizable value. By net realizable value we mean the realizable amount of the asset that will be realized when the asset is sold.