Which of the Following Is Used for Net Realisable Value

question 32

Multiple Choice

Which of the following is used for net realisable value when valuing inventory at lower-of-cost-and-net-realisable-value?

• A)Sales price less the company's normal markup percentage
• B)Sales price
• C)Sales price less costs of completing,marketing,selling and distributing the inventory to customers
• D)Cost plus the company's normal markup percentage

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Definitions:

Concentration Ratios

Concentration ratios are measures that indicate the extent of market control by the largest firms within an industry, reflecting the degree of market competition.

High Concentration

A situation in a market where a small number of firms hold a large market share, often leading to reduced competition.

Herfindahl-Hirschman Index

A measure used to evaluate the level of competition within an industry, calculated by squaring the market share of each firm within the industry and then summing the resulting numbers.

Concentration Ratio

A measure used to assess the degree of market concentration by looking at the market share of the largest firms within the industry.