Why Might Inventory Be Reported at Sales Prices (Net Realizable

question 64

Multiple Choice

Why might inventory be reported at sales prices (net realizable value or market price) rather than cost?

• A) When there is a controlled market with a quoted price applicable to all quantities and when there are no significant costs of disposal.
• B) When there are no significant costs of disposal.
• C) When a non-cancellable contract exists to sell the inventory.
• D) When there is a controlled market with a quoted price applicable to all quantities.

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