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.

---

Definitions:

Allocating Resources

Refers to the process of distributing available resources among various competing needs and uses in an economy to achieve optimal outcomes.

Redistributing Income

A policy or process by which a government aims to adjust the distribution of income among its citizens, typically through taxation and welfare programs to reduce economic inequality.

China's Southern Provinces

Regions located in the southern part of China, known for their dynamic economies, coastal cities, and significant role in China's economic development.

Export Platforms

Industrial zones or areas within a country designed primarily for the manufacturing of goods to be exported, emphasizing the country's role in global trade.