Why Do Accountants Criticize the Practice of Carrying Inventories at Estimated

question 29

Multiple Choice

Why do accountants criticize the practice of carrying inventories at estimated net realizable values?

• A)The costs of producing the products are usually estimates.
• B)There is usually no clearly defined realizable value for these inventories.
• C)The effect of this practice is to recognize income before sales are made.
• D)All of these answers are correct.

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