ACC 304 All Assignments ACC 304 All Assignments | Page 117

37. When inventory declines in value below original (historical) cost,
and this decline is considered other than temporary, what is the
maximum amount that the inventory can be valued at?
a. Sales price
b. Net realizable value
c. Historical cost
d. Net realizable value reduced by a normal profit margin
38.
Net realizable value is
a. acquisition cost plus costs to complete and sell.
b. selling price.
c. selling price plus costs to complete and sell.