Valuing Inventories Using Net Realisable Value Method Requires Managers To

question 38

Multiple Choice

Valuing inventories using net realisable value method requires managers to:

• A) estimate sales value of the components of the merchandise, less any anticipated conversion costs.
• B) estimate costs of the merchandise based on the most recent job cost sheets.
• C) estimate sales value of the merchandise less any anticipated costs of completing and selling the products.
• D) estimate sales value of the merchandise, disregarding any anticipated costs of completing and selling the products.

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Definitions:

Service Firm

A business that provides intangible products or services to consumers or other businesses rather than physical goods.

Professional Staff

Employees who possess advanced degrees or certifications and are typically employed in jobs that require specialized knowledge or skills.

Budgeting Work

Budgeting Work involves preparing financial budgets by estimating future income and expenses, helping organizations plan for short and long-term objectives.

Input Data

Information that is fed into a system or process for analysis, processing, or computation.