Net Realizable Value
Not what you're looking for?
Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the following statements are correct?
Cost is greater than NRV is greater than
net realizable value replacement cost
A. Yes Yes
B. No No
C. Yes No
D. No Yes
Purchase this Solution
Solution Summary
The solution goes into a great amount of detail related to Net Realizable Value. The response does an very good job of responding to the questions being asked and provide clear and concise answers to the problem. This is a great response for students looking to better understand this topic. Overall, an excellent response.
Solution Preview
C is the correct answer. Please look at the rationale below.
Net realizable value (NRV) is a method of evaluating an asset's worth when held in inventory, in the field of accounting. NRV is part of the Generally Accepted Accounting Principles that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. ...
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.