Damaged and Obsolete Goods That Can Be Sold

question 143

Multiple Choice

Damaged and obsolete goods that can be sold:

• A) Are never counted as inventory.
• B) Are included in inventory at their full cost.
• C) Are included in inventory at their net realizable value.
• D) Should be disposed of immediately.
• E) Are assigned a value of zero.

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Definitions:

Derived Demand

Demand for a good or service that arises from the demand for another good or service.

Concert Staging Co.

Concert Staging Co. would imply a company that specializes in providing the physical setup, including stages, lighting, and sound equipment, for concert performances.

Ostrich Leathers

High-quality and durable leather made from the skin of ostriches, used in luxury fashion products.

Derived Demand

The demand for a product or service that results from the demand for another product or service.