In Applying the Lower of Cost and Net Realizable Value

Multiple Choice

In applying the lower of cost and net realizable value (NRV) to inventory valuation, NRV is defined as:

A) Historical cost.
B) Estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
C) Current sales price.
D) FIFO.
E) LIFO.