'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:

MROUND

A function in Excel that rounds a number to the nearest multiple of a specified value.

Nearest

The closest in distance, time, or relationship among options or elements being considered.

MINUTE

A unit of time equal to sixty seconds or one-sixtieth of an hour, also a function in many applications to extract the minute portion from a time value.

Automatic Calculation

A feature in software that allows for the automatic computation of results based on input values, eliminating manual calculation errors.