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:

Target Markets

Specific groups of consumers a business aims to reach with its products or services.

Products

Goods or services offered by businesses to satisfy consumer needs or wants.

Marketing Factors

Variables that influence consumers' purchasing decisions and affect marketing strategies of companies.

Marketing

The business process of identifying, anticipating, and satisfying customers' needs through the creation and exchange of value.