Extractive Industries Should Value Inventory Held by Businesses At

question 21

Multiple Choice

Extractive industries should value inventory held by businesses at:

• A) lower of cost and net realisable value, including amortisation of pre-production cost
• B) net realisable value less an allowance for future rehabilitation costs
• C) net realisable value
• D) lower of cost and net realisable value, excluding amortisation of pre-production costs

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Definitions:

Inside Order Takers

Employees who handle orders from customers mainly through indirect channels such as phone or email, rather than through face-to-face interaction.

Outside Order Takers

are sales personnel who visit customers or potential customers in their places of business or residences to take orders for products or services but do not engage in proactive selling.

Replenish Inventory

The process of adding more stock or supplies to existing inventory to meet demand.

Outside Order Takers

Sales personnel who primarily accept and process orders from clients outside the company premises, rather than actively selling or persuading customers.