Which of These Would Not Cause the Net Realizable Value

question 28

Multiple Choice

Which of these would not cause the net realizable value of inventory to be below its cost?

• A) a rise in the selling price
• B) physical deterioration
• C) a decision to sell at a loss
• D) All of the above would cause the net realizable value of inventory to be below its cost.

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Definitions:

Range

The difference between the highest and lowest values in a data set.

Variance

A measure of the dispersion or spread of a set of values, indicating how much the values differ from the mean of the set.

Deviations

Differences between values in a data set and a central point, typically the mean of the set.

Interquartile Range

A measure of statistical dispersion, which is the spread between the first and third quartiles of a dataset, effectively capturing the middle 50%.