Damaged and obsolete goods that can be sold: multiple choice a) are never counted as inventory. b) are included in inventory at their full cost. c) are included in inventory at their net realizable value. d) should be disposed of immediately. e) are assigned a value of zero.

Correct option is (C)

Explanation:

Damaged or obsolete goods that can be sold are included in inventory at net realizable value. They are not recorded in full cost as they are worth less than that. The amount that is received at the time of sale is recorded, which is less than full cost.

Net realizable value is asset value derived from its sale less any amount incurred at the time of sale or disposal of asset.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

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