If a Unit of Inventory Has Declined in Value Below

question 147

Multiple Choice

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.

Understand different methods for allocating costs within a manufacturing setting.

Apply the physical units method for joint cost allocation.

Analyze performance reports of individual managers within a company.

Differentiate between support and production departments.