5. If a unit of inventory has declined in value below original cost, but the market value exceeds net realizable value, the amount to be used for purposes of inventory valuation is a) net realizable value. b) original cost. c) market value. d) net realizable value less a normal profit margin.
5. If a unit of inventory has declined in value below original cost, but the market value exceeds net realizable value, the amount to be used for purposes of inventory valuation is a) net realizable value. b) original cost. c) market value. d) net realizable value less a normal profit margin.
Financial Accounting Intro Concepts Meth/Uses
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ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
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![5. If a unit of inventory has declined in value below original cost, but the market value exceeds
net realizable value, the amount to be used for purposes of inventory valuation is
a) net realizable value.
b) original cost.
c) market value.
d) net realizable value less a normal profit margin.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39bb4191-8bc0-40f9-80bb-04c41008987a%2F18b51269-e044-4f39-887f-e31265688146%2Fttgh1u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. If a unit of inventory has declined in value below original cost, but the market value exceeds
net realizable value, the amount to be used for purposes of inventory valuation is
a) net realizable value.
b) original cost.
c) market value.
d) net realizable value less a normal profit margin.
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