Net realizable value as a basis for inventory valuation has been advocated and adopted in practice under the following circumstances: 1. When estimates of cost are arbitrary and a ready market exists for the goods, as is typically the case in the extractive industries; 2. When joint products are prevalent, as in the meat packing industry, and 3. When the expected proceeds from the sale of the inventory items are below historical costs because of price changes, damage, or obsolescence. These circumstances represent cases in which valuation on a historical cost basis breaks down either because of the infeasibility of determining meaningful cost estimates or because historical cost overstates expected value. However, beginning with Canning,1 many have advocated using net realizable value for inventory valuation on its own merits and not just because of the shortcomings of the historical cost basis. When future cash flows could be estimated or approximated, Canning favored direct valuation of inventories, his terminology for net realizable value. According to Canning:

Journal Article A Model for Piecemeal Welfare Policy Get access M. Sattinger M. Sattinger Carnegie-Mellon University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 37, Issue 2, April 1970, Pages 298–301, https://doi.org/10.2307/2296423 Published: 01 April 1970 Article history Received: 01 April 1968 Accepted: 01 March 1969 Published: 01 April 1970

Journal Article A Generalization of the Gross Substitute System Get access M. Morishima M. Morishima University of Essex Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 37, Issue 2, April 1970, Pages 177–186, https://doi.org/10.2307/2296411 Published: 01 April 1970 Article history Received: 01 February 1969 Accepted: 01 June 1969 Published: 01 April 1970

Journal Article A Note on Inferior Inputs Get access M. Syrquin M. Syrquin Harvard University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 37, Issue 4, October 1970, Pages 591–598, https://doi.org/10.2307/2296488 Published: 01 October 1970 Article history Received: 01 March 1968 Revision received: 01 December 1969 Published: 01 October 1970

Financial statement consolidation, Aggregation, Informational approach

Journal Article Corporate Taxation and Dividend Behaviour Get access M. S. Feldstein M. S. Feldstein Harvard University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 37, Issue 1, January 1970, Pages 57–72, https://doi.org/10.2307/2296498 Published: 01 January 1970 Article history Received: 01 January 1969 Accepted: 01 May 1969 Published: 01 January 1970