问题
单项选择题
Using the lower of cost or market principle under U. S. GAAP, if the market value of inventory falls below its historical cost, the minimum value at which the inventory can be reported in the financial statements is the:（）
A. net realizable value.
B. market price minus selling costs minus normal profit margin.
C. net realizable value minus selling costs.
答案
参考答案：B
解析：
When inventory is written down to market, the replacement cost of the inventory is its market value, but the "market value" must fall between net realizable value (NRV) and NRV less normal profit margin. NRV is the market price of the inventory less selling costs. Therefore the minimum value is the market price minus selling costs minus normal profit margin.
