When Determining the Net Realisable Value of Inventories, Estimates Must $\quad$

question 22

Multiple Choice

When determining the net realisable value of inventories, estimates must be made of which of the following: I. $\quad$ Estimated selling costs
II. $\quad$ Expected selling price
III. $\quad$ Expected replacernent cost
IV. $\quad$ Estimated costs of completion (if ary)

• A) I, II, III and IV
• B) I, II and III only
• C) II and IV only
• D) I, II and IV only

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Definitions:

Supply and Demand

Fundamental economic model describing how prices and quantities of goods and services are determined in a market based on the relationship between the quantity supplied and the quantity demanded.

Price Floor

A government or regulatory minimum price set for a commodity, below which it cannot legally be sold.

Farm Incomes

The earnings from agricultural activities that farmers receive, including profits from selling crops and livestock.

Binding Price Floor

A legally established minimum price that can be charged for a good or service, above the equilibrium price, leading to a surplus.