'Net Realisable Value' of Inventory Is Defined as the Net

question 19

Multiple Choice

'Net realisable value' of inventory is defined as the net amount that an enterprise expects to realise from the sale of the inventory:

• A) in the ordinary course of operations less estimated costs of completion and costs necessary to make the sale;
• B) plus the estimated costs of completion plus the estimated costs necessary to make the sale;
• C) in a forced sale;
• D) plus the estimated costs of completion.

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Definitions:

Organic Organisation

A type of organizational structure that is more flexible and adaptable, characterized by less formalization, wide spans of control, and decentralized decision-making.

Legitimate Authority

The right to lead or command, based on a recognized and accepted position of power within social, legal, or organizational structures.

Scientific Management

A management theory that emphasizes optimizing efficiency through systematic study and analysis of work processes.

Supervisory Support

Assistance and guidance provided by supervisors to their subordinates to help them perform their duties.