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
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. ...
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.