Question: Which of the following methods is NOT used for inventory valuation?
Options:
FIFO
LIFO
Weighted Average Cost
Net Realizable Value
Correct Answer: Net Realizable Value
Solution:
Net Realizable Value is not a method of inventory valuation; it is a measure used to assess the value of inventory.
Which of the following methods is NOT used for inventory valuation?
Practice Questions
Q1
Which of the following methods is NOT used for inventory valuation?
FIFO
LIFO
Weighted Average Cost
Net Realizable Value
Questions & Step-by-Step Solutions
Which of the following methods is NOT used for inventory valuation?
Step 1: Understand what inventory valuation means. It is the process of determining the value of a company's inventory.
Step 2: Learn about common methods used for inventory valuation, such as FIFO (First In, First Out), LIFO (Last In, First Out), and Weighted Average Cost.
Step 3: Identify what Net Realizable Value (NRV) is. It is not a method of inventory valuation but a measure to estimate the potential selling price of inventory after deducting costs.
Step 4: Compare NRV with the other methods. Since NRV is not a method, it is the correct answer to the question.
No concepts available.
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