Net Realizable Value Is

question 161

Multiple Choice

Net realizable value is

• A) acquisition cost plus costs to complete and sell.
• B) selling price.
• C) selling price plus costs to complete and sell.
• D) selling price less costs to complete and sell.

---

Definitions:

Budgeted Manufacturing

The process of estimating future production costs, including materials, labor, and overhead, for a specific period.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, which can include utilities, maintenance, and factory equipment depreciation.

Variable

An element, feature, or factor that is likely to vary or change; it could also refer to costs that fluctuate with the level of output.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent or salaries, providing predictability for budgeting.